Employee Retirement Plans
Employee Retirement Plans

Whether you are self-employed or the owner of a small business, there is a wide range of retirement plans designed to meet your specific needs.

Whether you are self-employed or the owner of a small business, there is a wide range of retirement plans designed to meet your specific needs.

Overview

Whether you are self-employed or the owner of a small business, there is a wide range of retirement plans designed to meet your specific needs. All of these retirement plans can help you and your employees save money for retirement while potentially providing tax advantages.

Details

Employer-sponsored retirement plans can be a great source of income for retirement. Retirement plans generally fall into two categories: defined benefit plans and defined contribution plans.

A defined benefit plan promises to pay a specified monthly benefit at retirement. The benefit may be a fixed dollar amount or it may depend on a plan formula that considers factors such as salary and years of service.

Defined benefit plans are also known as pension plans. Employers sponsor defined benefit plans and typically hire investment managers to make investment choices. The employer shoulders the investment risks.

A defined contribution plan, such as a 401(k) plan, does not promise you a specific payment upon retirement. In these plans, the employee and the employer contribute to an individual account, usually at a set specific rate, such as 5% of your annual salary.

In a defined contribution plan, the employee shoulders the investment risks, and the value of the account will fluctuate due to changes in the value of the investments. Upon retirement, the employee receives the balance in the account, which depends on contributions plus or minus investment gains or losses.

Benefits

Depending on the type of account, benefits include:

  • Increased employee retention
  • Easy to set up and maintain
  • Flexible annual funding requirements
  • Wide range of investment choices (usually mutual funds)
  • Potentially higher contribution limits than SEP IRA
  • Salary deferral plan with less administration
  • Electronic funding with customized contribution allocation for each participant
  • Plan administrative services, investment management, and participant education programs

Types of Plans

SEP IRA

For self-employed individuals or small business owners, including those with employees. Available to sole proprietors, partnerships, LLCs, C corporations, and S corporations.

Self-Employed 401(k)

For self-employed individuals or business owners with no employees other than a spouse. Available to sole proprietors, partnerships, LLCs, C corporations, and S corporations.

Simple IRA

For businesses with 100 or fewer employees and self-employed individuals. Available to sole proprietors, partnerships, LLCs, C corporations, S corporations.

401(k)

For any type of public or private company. Generally most appropriate for companies with 20 or more employees.

Next Steps

If you know which type of employee retirement plan is right for you, begin by completing an online application. If you prefer to speak to us first, please schedule some time to discuss your investment goals and objectives.
Whether you are self-employed or the owner of a small business, there is a wide range of retirement plans designed to meet your specific needs. All of these retirement plans can help you and your employees save money for retirement while potentially providing tax advantages.
Employer-sponsored retirement plans can be a great source of income for retirement. Retirement plans generally fall into two categories: defined benefit plans and defined contribution plans.

A defined benefit plan promises to pay a specified monthly benefit at retirement. The benefit may be a fixed dollar amount or it may depend on a plan formula that considers factors such as salary and years of service.

Defined benefit plans are also known as pension plans. Employers sponsor defined benefit plans and typically hire investment managers to make investment choices. The employer shoulders the investment risks.

A defined contribution plan, such as a 401(k) plan, does not promise you a specific payment upon retirement. In these plans, the employee and the employer contribute to an individual account, usually at a set specific rate, such as 5% of your annual salary.

In a defined contribution plan, the employee shoulders the investment risks, and the value of the account will fluctuate due to changes in the value of the investments. Upon retirement, the employee receives the balance in the account, which depends on contributions plus or minus investment gains or losses.

  • Depending on the type of account, benefits include:
    • Increased employee retention
    • Easy to set up and maintain
    • Flexible annual funding requirements
    • Wide range of investment choices (usually mutual funds)
    • Potentially higher contribution limits than SEP IRA
    • Salary deferral plan with less administration
    • Electronic funding with customized contribution allocation for each participant
    • Plan administrative services, investment management, and participant education programs

SEP IRA

For self-employed individuals or small business owners, including those with employees. Available to sole proprietors, partnerships, LLCs, C corporations, and S corporations.

Self-Employed 401(k)

For self-employed individuals or business owners with no employees other than a spouse. Available to sole proprietors, partnerships, LLCs, C corporations, and S corporations.

Simple IRA

For businesses with 100 or fewer employees and self-employed individuals. Available to sole proprietors, partnerships, LLCs, C corporations, S corporations.

401(k)

For any type of public or private company. Generally most appropriate for companies with 20 or more employees.

If you know which type of employee retirement plan is right for you, begin by completing an online application. If you prefer to speak to us first, please schedule some time to discuss your investment goals and objectives.

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