About 401k

If you are like most employers, you care about your employee’s futures and want to them to have sufficient funds to take care of their families, whether it be at retirement, in case of emergencies, or planning for a loved one’s future educational needs.

The problem is: between the rising costs of health insurance and recent pressures caused by increasing energy costs, your resources are limited. With this, ASC Trust Corporation has come up with a plan to cost–effectively help you help your employees. We call this plan, 401k Plus.

401k Plus is first and foremost a retirement plan. However it is not just a retirement plan.

401k Plus is a concept design using many of the components of the Pension Protection Act of 2006, College 529 Savings Plans, life & disability insurance, the ASC IRA Rollover program and annuity contracts to remove the issues that make traditional plans difficult to succeed.

Over the past two decades, 401k Plans have taken over traditional Defined Benefit (DB) Retirement Plans as the future of retirement plans in the United States.

401k Plans have a lot of benefits over DB Plans. The benefits to the employees is the employees can control their investments and their accounts are transferable from employer to employer assuring their ability to move from company to company without losing benefits. For employers, 401k plans are easier to account for and do not create future unknown liabilities for their company.

What does a successful 401(k) Plan look like?

If you ask ten experts what a successful retirement plan looks like, you will probably get 10 different answers. The one common feature of most explanations is that they are complicated and difficult to understand.

Our solution for employees to plan for a successful retirement is founded on two very basic concepts.

First, the average participant is going to need ten times their final pay, plus Social Security in order to retire comfortably. Second, a participant should be able to achieve the ten times pay formula by following our Formula for Success.

ASC’s Formula for Success projects that if a participants saves 10% per year, for 35 years and earns an average of 8.5% on their investments, they should have the ten times pay they need to retire.

If you would like to learn more about what a 401(k) can do for your future, contact an ASC representative at (671)-477-2724 or email info(asc)