What are the different types of retirement plans available to employers?

Employers in Hawaii have several different types of retirement plans that they can choose from to offer their employees. The most common types of retirement plans available to employers in Hawaii include 401(k) plans, 403(b) plans, and Roth IRAs. 401(k) plans are employer-sponsored retirement plans, allowing employees to put away a portion of their salary, pre-tax, into an account to be used for retirement. These funds are typically invested in a variety of financial instruments, such as mutual funds and stocks. Employers can choose to match their employees’ contributions, up to a certain percentage. 403(b) plans are similar to 401(k) plans, however they are only available to employees of certain tax-exempt organizations, like public schools and universities. They have some differences from 401(k) plans, including limits on when and how much money can be contributed. Roth IRAs are individual retirement accounts in which earnings are tax-deferred. They are funded with after-tax dollars, and contributions are capped at a certain amount per year. Withdrawals made after the retirement age are not taxed. Overall, these are the main types of retirement plans available to employers in Hawaii, though there may be others depending on the organization’s particular needs and requirements. Employers should consult a financial or tax advisor to determine which type of plan is most suitable for their employees.

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What are the different types of retirement plans available to employers?

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