A 401(k) plan is a versatile retirement savings vehicle designed to empower employees to invest and save for their future. With contributions made through payroll deductions, employees can build individual accounts, often with the added benefit of employer contributions.

Key Features and Benefits:

• Employee Contributions: Employees can contribute a portion of their wages to their 401(k) accounts through payroll deductions, allowing for seamless and consistent savings.
• Roth Savings Option: Some 401(k) plans offer Roth savings options, allowing employees to make contributions with after-tax dollars, potentially providing tax-free withdrawals in retirement.
• Employer Matching: Employers may choose to match a portion of employee contributions, providing an additional incentive for employees to participate in the plan and boost their retirement savings.
• Expanded Investment Choices: 401(k) plans typically offer a variety of investment options, empowering employees to customize their investment portfolios based on their risk tolerance and investment goals.
• Tax Deductions: Employers may be eligible for tax deductions on contributions made to their employees’ 401(k) accounts, offering potential tax benefits for the business.
• Employee Retention: Offering a 401(k) plan can enhance employee satisfaction and retention by providing valuable retirement benefits as part of the overall compensation package.
• Pre-Tax or Roth Deferrals: Employees often have the flexibility to choose between traditional pre-tax contributions or Roth deferrals, allowing them to tailor their contributions based on their tax situation and retirement goals.

Secure Your Employees’ Financial Future

By offering a 401(k) plan, employers can support their employees’ long-term financial well-being while potentially benefiting from tax advantages and enhanced employee retention. Contact us to learn more about setting up a 401(k) plan for your business and helping your employees plan for retirement.

Advisory products and services are offered by Investment Advisory Representatives through Uwharrie Investment Advisors, a Registered Investment Advisor and subsidiary of Uwharrie Capital Corp and an affiliate of Uwharrie Bank.

Retail brokerage and insurance products are offered by Registered Representatives through Private Client Services, LLC. FINRA and SIPC member. Private Client Services and Uwharrie Capital Corp along with its affiliates and/or subsidiaries are separate, distinct, and unaffiliated entities. It is important to note that the securities and insurance offered are: NOT BANK DEPOSITS AND NOT INSURED BY THE FDIC OR ANY FEDERAL GOVERNMENT AGENCY – NOT OBLIGATIONS OF OR GUARANTEED BY ANY FINANCIAL INSTITUTION – SUBJECT TO RISK AND MAY LOSE VALUE. Risk(s) will vary depending on investment made by the client. A Uwharrie Investment Advisor Representative will review these risk(s) with the client prior to investing.

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