The IRS describes 401(k)s as "a feature of a qualified profit-sharing plan that allows employees to contribute a portion of their wages to individual accounts." Beyond this fairly black and white overview, 401(k)s also provide benefits to employers that include tax deductions, tax protection and even a tax credit thanks to the Economic Growth and Tax Relief and Reconciliation Act (EGTRRA) that offsets the startup and employee educational costs when introducing a 401(k) plan for the first time. ...
The IRS describes 401(k)s as "a feature of a qualified profit-sharing plan that allows employees to contribute a portion of their wages to individual accounts." Beyond this fairly black and white overview, 401(k)s also provide benefits to employers that include tax deductions, tax protection and even a tax credit thanks to the Economic Growth and Tax Relief and Reconciliation Act (EGTRRA) that offsets the startup and employee educational costs when introducing a 401(k) plan for the first time. ...
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