A 401(k) plan allows employees to defer a portion of their W-2 wages into their retirement plan reducing their taxable income for the year. The maximum amount a person can contribute to his or her plan is set each year by the IRS. For 2014, an individual can contribute up to $17,500 to their employer’s 401(k) plan. Additionally, individuals age 50 or older, can contribute an additional catch-up contribution of $5,500.
The board of directors provide active leadership regarding important issues facing the corporation. In particular, the board is expected to provide leadership in:
- defining the corporation’s mission and strategy designed to achieve that mission;
- appointing and planning for succession of the president;
- ensuring the corporation’s compliance with the law.
A C corporation is a legal structure that businesses can choose to organize to limit their owners’ legal and financial liabilities. A C corporation is legally independent and unrelated to its owner’s personal income tax.
Every corporation is required to elect corporate officers. The corporation must elect a president, secretary and treasurer. A single individual can hold all corporate officer positions.
- A registered agent will help to maintain your privacy and separation from the public along with any other corporate decision makers.
- A registered agent will also accept legal and official documents outside of the business. This could include, but is not limited to, documents such as franchise tax notices, annual reports and official legal notices such as a court summons.
The period of service required to accrue ownership in employer contributions in order to withdraw them at the time of retirement or separation from service.