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Employer Sponsored Retirement Plans

Employer Sponsored Plans

There are several types of qualified plans that employers may offer to their employees.

  • Defined-benefit pension plans provide a fixed retirement benefit based on a formula that typically takes into account an employee's years of service and salary history.

  • Cash-balance plans are a type of defined-benefit plan that provides a retirement benefit based on a hypothetical account balance rather than a formula tied to an employee's years of service and salary history.

  • Money-purchase pension plans require the employer to contribute a fixed percentage of an employee's salary each year to the plan, while target-benefit plans include a formula that adjusts the annual contribution based on the plan's funding status.

  • Profit-sharing plans allow the employer to make discretionary contributions to the plan based on the company's profits.

  • 401(k) plans allow employees to contribute a portion of their salary to the plan on a pre-tax or post-tax basis, with some employers matching a portion of these contributions.

  • Stock bonus plans allow the employer to contribute company stock to the plan, which may vest over time and provide a retirement benefit to the employee.

  • Employee Stock Ownership Plans (ESOPs) allow the employer to contribute company stock to the plan, which is then held in trust for the benefit of the employees and may be used to facilitate the sale of a business to its employees.

 Two other types of tax-advantaged plans available to for-profit entities , that are not qualified plans because they are not subject to the same ERISA Code Sec. 401(a) rules, are referred to as SEPs (simplified employee pensions) and SIMPLEs (savings incentive match plans for employees). Eleven types of tax-exempt entities can also sponsor qualified plans, SEPs, and SIMPLEs. In addition, public school systems and those nonprofit organizations qualifying for Code Sec. 501(c)(3) tax-exempt status can sponsor 403(b) plans that are also referred to as tax-sheltered annuities.

Put our Team to Work for You

Retirement Ready is a great option for employers who want to provide their employees with comprehensive retirement plans. Here are a few reasons why:

  • Extensive Knowledge: We are staffed by experienced professionals who specialize in retirement planning and investment management. They can help employers navigate the complex rules and regulations surrounding employer sponsored retirement plans and provide guidance on investment strategies.

  • Customization: We offer a range of customizable employer sponsored retirement plans to meet the unique needs of each employer and their employees. Employers can choose from a variety of investment options, contribution levels, and plan features to create a plan that works best for their business.

  • Education: Our work site educators provide resources and tools to help employees understand their retirement plan and make informed investment decisions. This can help increase employee participation and engagement, leading to better retirement outcomes.

  • Technology: Cutting-edge technology to streamline plan administration and make it easier for employers to manage their retirement plans. This can help save time and reduce administrative costs.

Schedule an Employer Sponsored Retirement Plan Review

Our team of financial professionals have extensive experience in retirement planning and can help you evaluate your existing plan, identify areas for improvement, and develop a comprehensive plan that meets the companies and employees' needs and expectations. We will review your plan's features, investment options, fees, and compliance with legal requirements to ensure that it is competitive and cost-effective. Our review is comprehensive, easy to understand, and tailored to your unique business needs and goals. Contact us today to schedule a free consultation and take the first step towards offering a comprehensive and competitive retirement plan to your employees.

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