We’re pleased to announce that you can now make 401(k) benefits available for free to your team through the Justworks product. Empower your employees to save for their future, without negotiating with vendors; navigating filings and audits; and staffing up to oversee the process. Give your team access to enterprise level benefits without the cost or the hassle.
What Is 401(k)?
A 401(k) is a retirement savings plan that an employer sets up for their employees. In a standard 401(k), employees can allocate a portion of their paycheck, pretax, to the retirement savings plan. The employee then pays taxes on their earnings much later (during retirement), when the money is withdrawn. This system allows employees to save for their future without having to rely on an employer offering a pension (another form of retirement savings plan that is being offered less and less often). 401(k) refers to the specific section of the Internal Revenue Code that spells out this retirement savings plan.
What are the benefits of Justworks 401(k)?
- It's fully-integrated and free to add-on to your Justworks Premier account.
- You're able to invest anywhere, including big fund managers like Vanguard and Fidelity.
- You can choose the amount you’d like to invest, either a flat amount with each regular paycheck, or a percentage of your salary.
- You can choose where to invest your earnings: you can select from mutual funds, stocks, bonds, and money market investments.
- Employers have the option of matching your contributions to any degree they choose.
- We take care of both pretax and after-tax (Roth) deferrals.
- Saving for your future feels pretty great!
How Justworks 401(k) Works
Justworks 401(k) is available to all Premier customers, for no additional fee. 401(k) is not available on Standard or Free plans - consider upgrading today, as Premier also includes and automates a lot of other things that you may be dealing with separately, like workers' compensation, disability insurance, pre-tax transit benefits, and EPLI.
If you’re a Justworks user, here’s how to enable Justworks 401(k):
Step 1 - What your Justworks Plan Administrator needs to do:
- First, you would need to contact us to let us know you’re interested - you can reach us any time at firstname.lastname@example.org or (888) 534-1711.
- We would then connect you with our 401(k) partner, Slavic401k, who would walk you through setting up the best plan for your company and how much (if any) your company will match of your employee’s contributions. It usually just takes one phone call with our 401(k) partner.
- Everything is automated from there. We'll withhold the appropriate amounts, calculate the matching (if applicable), and send the funds to your employee’s 401(k) accounts!
Step 2 - Once that's done, what your Employees need to do:
- After your company turns on its 401(k) plan, you’ll be told how much your company is matching (if applicable) and given directions to choose how much of your earnings you want to defer to your retirement plan - either a flat amount with each paycheck, or a percentage of your salary.
- Everything is automated from there. We'll withhold the appropriate amounts, calculate the matching (if applicable), and send the funds to your 401(k) account! You can adjust the amount you want to defer at any time.
Become an expert on 401(k) and other employee savings.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.