retirement planners:An Employer Must

2008-04-23 16:13:08

( Insurance )



Do you want to start a new retirement plan? Well retirement planners are easier and even a lot less expensive than you would imagine.

Business retirement plans for your employees is simply good business sense.

Today employers are very technically savvy – early retirement planning is very important to them.

According to recent studies, employees today rate a retirement planners benefit as the second most important benefit in their package.

If you want to employ and keep top-notch employees you need to be competitive with the retirement planners you offer.

Before you organize and implement your retirement planners you need to ask some simple questions, make some decisions and then you have the framework for your retirement planners benefit.

After your design is in place, simply fill out some forms and announce your employee benefit.

So what questions do you need to ask?
1. What options does your plan need?
2. Eligibility or Vesting period?
3. Employer Match or No Match contribution?
4. Hardship withdrawals?
5. Investment choices?
6. Participant loans?
7. When will you start your plan?

1. What options?
Several choices are available to you when considering a plan for your employees. One such plan is the traditional 401k Plan. It’s the most popular plan in use by employers today and you might find it convenient as well. This plan permits payroll deferrals by your employees.
But whatever plan you decide is best for your organization is based on what kind of business you have (profit or non-profit) and what your goals are for your employee benefits and how you intend to meet your employees retirement goals.
You can get a comprehensive look at the different plans available on-line.

Match or No Match Contribution
Deciding on a plan will also depend on whether you intend to provide an employee’s match contribution. If you decide to enhance your plan like this you can choose either a fixed or discretionary match.

Most 401k plans today have a “fixed” contribution. They are most often made on the basis of a payroll period.

You can have a Profit Sharing Plan as a stand alone plan. No payroll deferrals are made and only the employer makes a contribution. This amount is either “fixed” or discretionary, based on the company profits and other financial criteria at the employer’s sole discretion.

With a profit sharing discretionary match, you the employer decide how much to contribute to the plan. It remains, however, a stand alone plan because employee contributions are not included. Sometimes it is coupled with a traditional 40k that includes employee contributions. So your employee gets the best of both options.


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