1308 North First Street, Ste. B
Bellaire, TX 77401
Phn: 713-667-1010
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       Have you thought of starting a 401k for your employees?  
                                                                  Do you have questions?  

                  Hartnett & Company
can help you get started.

A few simple facts about 401k's.
    What is a 401(k) plan?
A 401(k) is an employer-sponsored retirement plan that allows you to put aside money from your paycheck and invest in your future. Employers may also make contributions on behalf of eligible employees. By participating in a 401(k) plan, you not only become a disciplined saver, you may also pay less in current taxes.

    How much can you contribute and when?
Employees can contribute up to $17,500 to a 401(k) in 2014, an amount that is adjusted annually for inflation by the IRS.  Employees age 50 and older can deposit a 'catch up' amount of an additional $5,500.
Some plans allow you to sign up as soon as you start a new job, while others impose a waiting period of a few months or even a year before contributions can start.  The contributions are typically made from pre-tax (see next fact) deductions from your paycheck.

    Are there tax savings (pre-tax contributions)?
Traditional 401(k) accounts allow employees to defer paying income tax on the funds you contribute until they withdraw the money.  To see about how much an employee can save, multiply you contribution amount by your tax rate.

    What is the employer's match and how do I become fully vested?
Many employers will match part of all of the amount you contribute to a 401(K).  Match amounts vary by employer, but the most common
 is $.50 for each dollar saved up to a 6$ of pay.   
Fully vested is when you have the right to the money your employer has contributed to your account.  You always have the right to your investment 
dollars, but after a certain time frame of employment you will also get to keep the employer's contribution.  This can be as long as 5 or 6 years.

    Are there any penalties?
If you leave your job at age 55 or later, you can take 401(k) withdrawals from your most recent 401(k) without incurring the 10 percent early withdrawal penalty. However, if you leave a job with a 401(k) before age 55 or roll the money over to an individual retirement account, you'll have to wait until age 59½ to avoid the penalty.

Contact us when you are ready to begin and we can help with these questions and more.





Phone – 713-667-1010
Address – 1308 North First Street, Ste. B
Bellair, TX 77401