Answer: The benefits to having a 401(k) for your company are: to attract and retain employees, tax advantages to the company and employees, increase productivity, and profitability. The benefits to the employee are: pre-tax contributions, pre-tax growth of account until retirement, control over your own investments, portability, protection of your retirement due to the pension laws, higher contributions limits than other qualified plans, and extra money for retirement from the company (if a company match is in place).