401(k) Admin

401(k) Administration

If you’re like us, you want more for your employees. But you might not know the best way to ensure a profitable future for them. Enter Compass, your guide to setting up — and keeping up — Defined Contribution retirement plans with long-term success.

A Defined Contribution plan, like a 401(k), is a great option for companies who want to help their employees save for their future, while also matching some or all of those defined contributions. It’s a straightforward way for employers to make sure their employees are preparing for their future, and offer a helping hand. And although they’re a more traditional retirement plan design, we at Compass have our finger on the pulse of the ever-changing retirement landscape. 

With a 401(k), employees have two options – a traditional 401(k) or a Roth 401(k). Below is a quick Compass breakdown of each:

Traditional 401(k)

  1. Tax savings now: All 401(k) contributions are taken from pre-tax income, so you will decrease the amount you pay in taxes at the time of contribution.
  2. Compounding of interest: Saving for retirement today, and allows for compounding of interest over time; the younger you start the more your savings will grow. 

Roth 401(k)

  1. Future tax savings: Employees can contribute after-tax, which allows an employee to receive all the growth on their money tax free in retirement (the original contributions plus all the growth of those assets).
  2. Compounding of interest: Same as a traditional 401(k).

From the employer’s perspective, the company match can be a competitive advantage to retain employees. Each company decides the amount to match and any details surrounding vesting.  The company match can be taken as a tax deduction on their federal and state income tax obligations.

Compass offers a full range of 401(k) Administrative and Consulting services. We’ve worked with over 1,500 plans and thousands of participants. Whatever your needs are, we can meet them.