Retirement Plans to Offer Your Employees

on 11/14/2014 - 01:40 pm

While actual retirement may be decades away for some of your employees, it’s not too early for them to begin saving for their future. Most of the responsibility falls to the employee when it comes to putting money away. However, to entice the right talent and keep them happy throughout the years, employers <should> think about <offering> some of the following programs and we can help with some free quotes:


“Defined Benefit” Plan


This plan offers benefits to an employee upon retirement. Length of employment and salary

are contributing factors when it comes to the amount. The owner of the business assumes

responsibility of the fixed rate set forth by the government. While there doesn’t seem to

be much flexibility with the defined benefit plan, as with other retirement benefits, it’s an

attractive option for employees because the benefits are guaranteed.


An employer can also contribute more money than any other plan, which can earn them

greater tax advantages. Since the defined benefit plan varies from other retirement

programs, it can be combined with other plans such as the SEP IRA and Solo 401(k). In

addition to the pros, cons such as payout limits and high costs can be associated with the

defined benefit retirement plan.


401(k) Plan


A 401(k) can be a powerful tool when you’re looking to hire employees. The participants

involved in the program can decide, on their own, how much they would like to contribute

each paycheck. For an individual at the early stages of their career, they may want to have a

smaller portion deducted than someone who is closer to retirement.

Through the various stocks and investments, the money contributed may grow. The

contributions that are made are not taxed by the state or Federal governments. If an

employee decides to leave, a 401(k) gives them the chance to take that money along with

them to another employer.


Simple IRA Plan


When it comes to a simple IRA plan, filling out the form to begin is a breeze. Whether you

let your employees decide where they would like to invest their money, or you select the

institution on your own, the program is also inexpensive to start up and maintain. The year-
end paperwork is also a dream to keep track of, if you’re an employer.

Unlike the Roth IRA, the simple <IRA> plan allows for a higher contribution rate, plus a

catch-up clause for individuals over the age of 50. Money that you place into the account is

also tax deductible. However, this type of program is limited to the smaller businesses who

house under 100 employees. If the employee withdraws their money early, they could also

incur strict penalties by as much as 10 percent.




Simplified Employee Pensions (SEP) IRA programs are another popular retirement option to

offer. In addition to being easy to set up and maintain throughout the years, you’ll find the

plan tax deductible. Employers also make all of the contributions, so your employees don’t

have to worry about parting with their own money.


While it can be a great plan to entice the best talent, you have to remember that all

employees must be included. You also have to pay the same percentages as you would for



Saving for retirement may not be on the mind of all of your employees. However, watching

the money grow and knowing that you’re helping them to enjoy a more financially

comfortable future can prove beneficial to everyone.