HR Strategies Advances Employee Retirement Funds by Offering Clients 401(k)

Challenges:

HR Strategies is a Human Resource company, which supplies human resource solutions to many different client companies. One of the most sought after HR solutions for many companies is to offer employee benefits to their worksite employees; with one of the top requested options being that of a 401(k) program. As worksite employees face the fact that they are not getting younger, and that they will all reach a point where they will not want to or be able to work; they are in need of a way to maximize their savings for retirement.


Solution:

HR Strategies offers eligible worksite employees a 401(k) option to facilitate maximizing their savings for retirement. HR Strategies has simplified the process by automatically deducting 401(k) deferrals from the eligible employees’ paychecks. Through the automatic deduction process and the decreased income taxes (due to decreased taxable wages), HR Strategies has been able to ease the burden of retirement saving for its client worksite employees. In addition to advancing retirement savings through ease and more take home income, participating in a 401(k) has the potential for a higher savings yield than a traditional savings account. It is important to note again, that worksite employees are not getting any younger, and retirement is only getting closer. Beginning contributions at an early age can result in greater savings, but this does not mean that an “older” employee should not take advantage of the great benefits a 401(k) can offer. Rather, it means that a person of any age should contribute to the fullest of their ability. If a person is of age 50 or older they may exceed the maximum yearly 401(k) amount allowed by making an additional catch up contribution of $5,500.00 per year.

Results:

Client worksite employees are able to advance their employee retirement funds by taking advantage of and enrolling in an employer sponsored 401k plan. By maximizing their contribution amounts, and making catch up contributions if eligible, worksite employees can advance their savings for retirement a great deal.