We recently held our annual 401(k) meeting where our investments administrator came to our firm and gave us a presentation on the state of our 401(k). In addition to that information, he answered questions we had about our account or investing. Our investment administrator, explained the differences between the two types of IRA’s, and what we should consider when choosing which retirement account is right for us.
A new method of providing pre-tax investment opportunities to key employees
Many business owners and companies utilize 401(k) plans or similar type plans for their employees. And they should. 401(k) plans have the most attractive features of any investment available in the marketplace, (i) pre-tax deferrals on compensation, and (ii) tax deferred compounding on those dollars.