Since 1999, Michael Mullis has served as a wealth manager at Kelley & Mullis Wealth Management, an investment firm based in Birmingham, Alabama. Michael Mullis provides clients with guidance on a number of investment services, including financial planning for retirement.
Employers can establish several different retirement investment vehicles, but two of the most common are Individual Retirement Accounts (IRAs) AND 401(k) plans.
While an employee can use payroll deductions to fund an IRA, this retirement vehicle usually operates independently of the employer. The employer does not match contributions and cannot dictate terms on funding amounts or frequency.
Another type of IRA, known as a SIMPLE (Savings Incentive Match Plan for Employees) IRA, does mandate that employers make some kind of contribution. These plans are available only to companies with 100 employees or fewer.
Employers who offer 401(k) plans usually offer matching contributions up to a certain percentage of the employee’s gross salary. These plans are popular because money is contributed on a pre-tax basis and is not taxed until taken out of the account.
Employers can establish several different retirement investment vehicles, but two of the most common are Individual Retirement Accounts (IRAs) AND 401(k) plans.
While an employee can use payroll deductions to fund an IRA, this retirement vehicle usually operates independently of the employer. The employer does not match contributions and cannot dictate terms on funding amounts or frequency.
Another type of IRA, known as a SIMPLE (Savings Incentive Match Plan for Employees) IRA, does mandate that employers make some kind of contribution. These plans are available only to companies with 100 employees or fewer.
Employers who offer 401(k) plans usually offer matching contributions up to a certain percentage of the employee’s gross salary. These plans are popular because money is contributed on a pre-tax basis and is not taxed until taken out of the account.
