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Retirement Plans for Businesses

Whether you are a corporation or a non-profit organization, offering your employees a good retirement plan is essential. In today’s world, a well-rounded retirement plan is a genuine benefit that will help your organization attract and retain a dependable workforce. Your type of business and your objectives will determine the type of plan you choose to offer.

Find out how Investment Insight Wealth Management can help you structure the corporate or non-profit plan you need for your organization. With years of portfolio management and planning experience, coupled with exceptional communications practices, we want to be your financial intermediary. Honesty, integrity, accountability, and top-notch customer service characterize all that we do. 

Corporate Retirement Plans

must involve participation from a company with the establishment of the plan. These plans can be funded strictly by employee contributions, strictly by employer contributions, or a combination of both employee and employer contributions. A 401(k) is a very common type of corporate retirement plan.

Non-Profit Retirement Plans

like the 403(b), allow employees to save a portion of their salary through payroll deductions and the money withheld in these plans is not taxed until it’s withdrawn. Other plan formats are available for non-profits, including retirement plans funded by the employer or the classic pension plan that provides retirees with monthly payments that represent a percentage of the salary they had earned while employed.

Glossary of Terms

  • 401(k) Retirement Plan: 
    The 401(k) allows employees to save for retirement directly from their paychecks with pre-tax contributions to the plan. Companies have the option to contribute through employer matching, profit sharing contributions or a combination of both. Plans can be designed so that longer term employees are rewarded with larger company contributions than those that leave after shorter periods of employment. It can be a valuable tool for attracting and retaining skilled employees.

  • 403(b) Plans:
    403(b) plans are available for employees of schools, non-profits, and hospitals. It allows employees to save for retirement directly from their paychecks with pre-tax contributions to the plan. Optional employer contributions can also be made.

  • Defined Benefit Plans:
    A defined benefit plan is a type of retirement plan that is funded by the employer. It is a very good way for a business to make large tax deductible contributions. This plan is commonly referred to a pension plan. It is most commonly used in large corporations, schools, municipalities, or governments and professional practices. Benefits are typically paid in the form of a monthly check.

  • Profit Sharing Plans:
    Profit sharing is an employer funded plan that allows for non-mandatory tax deductible contributions that can be as high 25% of each employee’s salary. They can be designed to reward only those employees that stay with the company for the long term.

  • SIMPLE IRA Plans:
    The SIMPLE IRA Plan is funded by both employee and somewhat flexible employer contributions. It is designed for smaller businesses and is called a SIMPLE because it is easy to set up, requires no annual testing for compliance or no tax return to be filed.

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