Employer Sponsored Retirement Plans
Employer-sponsored retirement plans give businesses the ability to provide valuable, tax-advantaged savings opportunities for their employees—while also offering benefits to the company itself. Whether you’re looking for a traditional 401(k), a SIMPLE IRA, or a SEP IRA, these plans can be tailored to suit the size, goals, and budget of your organization.
As qualified retirement plans, all three options share key advantages: contributions are either tax-deductible (for employers) or made on a pre-tax basis (for employees), and investment growth within the accounts is tax-deferred. Withdrawals in retirement are taxed as ordinary income, and early withdrawals before age 59½ may be subject to penalties.
The right plan for your business depends on factors like company size, desired level of employer involvement, and administrative complexity.
401(k) Plans
A 401(k) allows employees to contribute a portion of their paycheck—pre-tax or post-tax via Roth—and gives employers the option to match contributions. With higher contribution limits than IRAs, flexible investment options, and potential profit-sharing features, 401(k)s are a powerful recruiting and retention tool, though they do require more administration and compliance oversight.
SIMPLE IRA Plans
Designed for small businesses with 100 or fewer employees, SIMPLE IRAs let employees make salary deferrals and require employers to either match contributions up to 3% of pay or make a 2% nonelective contribution for all eligible staff. They’re easy to set up, affordable to maintain, and provide a straightforward way for employees to save for retirement.
SEP IRA Plans
SEP IRAs are ideal for small businesses or self-employed individuals who want maximum flexibility with minimal administration. Only employers contribute—up to 25% of each eligible employee’s pay—and contributions are discretionary, allowing adjustments from year to year. Employees own their accounts outright and can choose how to invest their funds.
Choosing the Right Plan
Selecting the right employer-sponsored retirement plan depends on your company’s size, budget, and goals for employee benefits. Whether you want the robust features of a 401(k), the simplicity of a SIMPLE IRA, or the flexibility of a SEP IRA, we can help you design a plan that works for your business—and your employees’ futures.