401(k) Plans

You may think a 401(k) is only for larger businesses, but you may find that this option is less complex and more affordable than you thought. The drawback is that the rules for keeping a plan in compliance with the law can be quite strict. There are actually several versions you might consider, in addition to the individual 401(k), if you're self-employed or the only employee. Those options are a conventional 401(k), a Safe Harbor 401(k), and a SIMPLE 401(k). All three are salary reduction plans, and all require vesting schedules. But there are some major differences you'll want to weigh before making a choice.

Those variations include:

• What the contribution limit is
• Whether the employer must contribute
• What federal nondiscrimination testing must be done

View the retirement plan comparison fact sheet to learn more about your options.

Advice Focused On You

For help in determining which retirement plan meets your needs call People's Financial Advisors at 1-800-392-3009 to schedule an appointment with a Financial Advisor near you.

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People's Financial Advisors is a division of People's Securities, Inc. Investments & Insurance are available through People's Securities, Inc. (member FINRA and SIPC), a subsidiary of People's United Bank.