National Employers Retirement Trust

As employees grow more aware of the need to plan for the future, retirement and 401(K) plans are a frequently requested employee benefit. These plans are easily explained to employees and with a wide array of investment options and contribution levels, participation is generally high. A 401(K) plan offers employees an opportunity to make significant tax-advantaged accumulations with little corporate outlay or permanent employer contribution obligations.

Sponsoring a retirement plan promotes the employer's image as well, encouraging greater loyalty and commitment to your firm, and enhancing your reputation in the marketplace. With an array of high quality, well-known mutual funds to choose from, your employees can track their investment returns by checking the business section of the newspaper.

It's the cornerstone to a secure retirement.

Tax Advantages

Benefits in the plan are not taxable until distributed, whether at termination or retirement.
In 401(K) plans, employee contributions are made with pre-tax dollars, reducing current income tax liability. Employees can contribute a larger percentage of their earnings without a proportionate decrease in their take-home pay.
Employees can save more in a 401(K) plan than an IRA, resulting in a larger nest egg at retirement.

Investment Control

Participants can direct their pension investments based on their financial goals and degree of risk tolerance.
Employee contributions are immediately vested. Employer contributions are vested based on the schedule your select.
Terminating participants can elect a lump sum payment schedule or defer payment until a later date, depending on the plan's design.

Flexibility

Participants can increase/decrease their contribution levels or move between funds as their circumstances and the market change.
If your plan permits participant loans, the funds are available in case of emergency or certain circumstances (purchase of primary residence, tuition, medical expenses, etc.)
Employees contributions are made via payroll deduction, making it an easy and effective way to save.