Investments
    Retirement
    Asset Protection
401k
We work together with you to design the 401k plan that fits your business needs.
What is it?
  • A 401k/1165e retirement plan allows employees to contribute an amount before or after taxes through a payroll deduction agreement.
  • Employer does not have to contribute to the plan, but can match the amount or make separate contributions.
Benefits to employer
  • Tax savings – Employer can deduct contributions as a business expense
  • Low risk – Fiduciary liability is reduced because it is the employees’ decision to invest and Oriental Bank and Trust is the trustee
  • Better labor relations – Helps recruit, retain and motivate good employees and fosters good labor relations
  • Flexibility – Designed to fit specific company needs. Employer has the option to contribute, has the option to match employees’ contributions and can also determine time stipulations for employee to have rights over employer contributions.
Benefits to employee
  • Tax savings – Employee reduces his or her tax obligations1.
  • Asset accumulation has tax payment deferment – All contributions to plan have a tax deferment until retirement. You will then have the option to tax at a special rate of 12.5% if you get the lump sum amount. If you choose to receive payment installments and you are 60 or older, the first $15,000 are tax-exempt for 2008.
  • Convenience - Contributions are automatic through payroll deductions.
  • Flexibility – Employee can choose the type of investment that best fits his or her needs and can also change the amount to contribute, if he or she so desires
  • Higher contributions – The plan allows a contribution as high as $9,000 per year.
Disclosures

Past results are not a guarantee of future returns. The FDIC does not insure investment products; they are neither deposits nor obligations of Oriental Bank and Trust and are not guaranteed by Oriental. They are subjected to investment risks, including the possibility of losing the capital invested. Ask for detailed information on the plan and read it carefully before participating.
1 Oriental Group does not offer tax advice. Consult your tax advisor before contracting.
2 Subject to changes in the Puerto Rico Internal Revenue Code or special laws. Oriental Trust, a department of Oriental Bank and Trust offers retirement plan 401K/1165.

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