401(k) Plans

What is a 401(k) plan?

A 401(k) plan is a retirement savings plan offered by many American employers that has tax advantages for the saver. It is named after a section of the U.S. Internal Revenue Code (IRC)

Who can participate?

Based on employer plan rules. Generally, must be offered to all employees at least 21 years of age who have completed a year of service with the employer.

Both employers and participants in qualified plans may take advantage of significant tax benefits that include taking a deduction for contributions to the plan (employer) and sheltering income and plan earnings from income tax until distributed (participant).

Employer contribution limits

For 2024, employer plus employee contribution limit is $69,000 ($76,500 if the employee is age 50 or older). Contributions are deductible as a business expense and are not required every year.

Employee contribution limits

Under Age 50
- $23,00 Cannot exceed 100% of compensation.

Over Age 50
- $30,500 Cannot exceed 100% of compensation.

At American Harbour RPS, we follow a systematic and comprehensive process to design customized 401(k) plans that align with your business goals and cater to the unique needs of your workforce. Our process combines in-depth analysis, strategic planning, and expert guidance to create retirement plans that maximize benefits for both employers and employees. Here is an overview of our process for 401(k) plan design

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