ING 401k Plans

Build a Stronger Future 

for you and your employees


Whether you are interested in a 401k plan for 10 employees or a plan for 100 employees, we have a 401k plan that is just right for you and your business. We offer affordable 401k plans with no hidden fees. We also offer multiple investment options to help fund your employees' retirement plan. Get your customized proposal today.

  • Startup or takeover plans
  • No up-front or back end sales charges
  • Affordable and competitive plan administration cost
  • Safe Harbor 401k plan design
  • Discretionary profit sharing contributions
  • Web based enrollment and contribution processing
  • Loan features included
  • Roth 401(k) features included
  • Many investment options to choose from the world's leading fund families. 


Get more Information or a Free Personalized Quote

 

 Small Business 401k Plan    

   (1-50 total employees)                                
                                                                        
 Mid Size Business 401k Plan  

    (51-250 total employees)  

 Large Size Business 401k Plan    

    (250+ total employees)      

 

Businesses with fewer than 100 employees may be eligible for a tax credit of 50% ($1,000 maximum) of the administrative costs in the first three years of the new plan.
 

 What Is a 401(k) Plan? 


A 401k plan is self-directed, qualified retirement plan established by an employer to provide future retirement benefits for employees. Employee contributions are made on a pre-tax basis, and employer contributions are often tax deductible. [Roth 401k contributions are made after-tax, but qualified withdrawals in retirement are free of federal income tax.] Many employers are now enrolling new hires automatically in 401k plans, allowing them to opt out later if they choose not to participate. This is done in the hope that more employees will participate and will start saving for retirement at an earlier age.

If you elect to participate in a 401k plan, you can allocate a percentage of your salary to your plan every month. The maximum annual contribution is $16,500 in 2009. If you will be 50 or older before the end of the tax year, you can contribute an additional $5,500. Contribution limits are indexed annually for inflation. The funds in your account will accumulate tax deferred until you begin taking distributions in retirement.

Employer contributions are often subject to vesting requirements. Employers can determine their own vesting schedules, making employees partially vested over time and fully vested after a specific number of years. When an employee is fully vested, he or she is entitled to all the contributions made by the employer when separating from service.

In plans that offer loans, you may also be allowed to borrow money from your account (up to 50% of the account value or $50,000, whichever is less) with a five-year repayment period. Of course, if you leave your job, the loan may have to be repaid immediately.

The funds in a 401k plan are portable. When you leave your job or retire, you can move your funds or take a taxable distribution. However, if you leave a company before you are fully vested, you will be allowed to take only the funds that you contributed yourself plus any vested funds, as well as any earnings that have accumulated on those contributions.

Within certain limits, the funds in your 401k plan can be rolled over directly to your new employer’s retirement plan without penalty. Alternatively, you can roll your funds directly to an individual retirement account (IRA) instead.

You must begin taking required minimum distributions from 401k plans no later than April 1 of the year after you reach age 70½.* Distributions from regular 401k plans are taxed as ordinary income and may be subject to a 10% federal income tax penalty if withdrawn before age 59½, except in special circumstances such as disability or death.

A 401k plan can be a great way to save for retirement, especially if your employer offers matching contributions. If you are eligible to participate in a 401k plan, you should take advantage of the opportunity, even if you have to start by contributing a small percentage of your salary. This type of plan can form the basis for a sound retirement funding strategy.

The information in this article is not intended to be tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor.

*The Worker, Retiree, and Employer Recovery Act of 2008, suspends required minimum distributions for the 2009 tax year.

 

What Is a Roth 401(k) Plan?

The arena of employer-sponsored retirement plans has been dominated by 401k plans that are funded by pre-tax contributions, which effectively defers taxes until distributions begin. However, the recently created Roth 401k is funded with after-tax money just like a Roth IRA, allowing retirees to enjoy qualified tax-free distributions once they reach age 59½ and have held their accounts for at least five years.

It might be smart to invest in a Roth 401k if you believe that you will be in a higher tax bracket during retirement. This is always a possibility, especially if you end up with fewer tax deductions during your post-working years. On the other hand, if you expect to be in a lower tax bracket during retirement, then deferring taxes by investing in a traditional 401k may be the answer for you. If you have not been able to contribute to a Roth IRA because of the income restrictions, you will be happy to know that there are no income limits with a Roth 401k.

Employers may match employee contributions to a Roth 401k plan, but any matching contributions must go into a traditional 401k account. Therefore, employers must have both types of plans in place if they want to offer their workers a Roth 401k.

If an employer offers a Roth 401k plan, the employees will usually have the option of contributing to either the regular or the Roth 401k, or even both at the same time. If you do not know which type of account would be better for your financial situation, you might want to split your contributions between the two types of plans. It’s important to note that your combined annual contributions to a 401k plan cannot exceed $16,500 if you are under age 50, or $22,000 if you are 50 or older (in 2009). These amounts are indexed annually for inflation.

Upon separation of service, funds contributed to a Roth 401k plan can be rolled over to another Roth 401k, a Roth 403(b), or a Roth IRA. They cannot be rolled into a standard 401k plan. If you transition from an employer that offers a Roth 401k plan to an employer that does not, your only option would be to roll it over directly to a Roth IRA or to leave your money in your former employer’s plan (if allowed).

The required minimum distribution guidelines of a Roth 401k work like those of traditional 401k plans. You must begin taking distributions after reaching age 70½, either as a lump sum or on a required minimum distribution schedule based on your life expectancy.*

If you see the advantages of having tax-free income in retirement, as you would with a Roth IRA, then you might want to consider a Roth 401k. It allows you to save much more for retirement than an IRA, and the tax-free distributions won’t add to your income tax liability. Of course, before taking any specific action, you might want to consult with your tax professional.

The information in this article is not intended to be tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor.

*The Worker, Retiree, and Employer Recovery Act of 2008, suspends required minimum distributions for the 2009 tax year.