The design stage
Article Abstract:
Even though setting up a 401(k) benefit program can be so complicated that many companies have an external consultant do the work, treasury managers should have an understanding of how the plans work and how they will affect the company. The nine points which can be followed to set-up an effective 401(k) plan are: develop a team, set up a timetable, choose the best possible record keeper-communicator, take the time to come up with a marketable plan, have top management review the plan, develop a program to explain the plan in down-to-earth terms, work with the payroll and data processing departments immediately, choose the trustee and attorney, and create the staff to administer the plan.
Publication Name: Cashflow Magazine
Subject: Business
ISSN: 0196-6227
Year: 1985
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401(k)
Article Abstract:
401(k) plans allow employees to take before-tax wage deductions, which can then be channeled into company-managed investments to earn extra income that is not taxable during the accumulation period. Employers benefit from the plans via improved employee relations, and contributions made on behalf of employees are tax deductible. Disadvantages for the employee include being able to withdraw cash from the fund only for purposes of retirement, death, disability, and separation from service.
Publication Name: Cashflow Magazine
Subject: Business
ISSN: 0196-6227
Year: 1985
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Administering the plan
Article Abstract:
The administrative decisions concerning a 401(k) plan are important to determining the success of such plans. Factors which must be taken into consideration when making decisions regarding the administration of a 401(k) plan are described. A key element to the success of a plan is offering a manageable number of investment options to employees.
Publication Name: Cashflow Magazine
Subject: Business
ISSN: 0196-6227
Year: 1985
User Contributions:
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