401(k) Retirement Plans:
Setting up a 401(k) system for your business for the first time may seem daunting, but depending on your company’s needs, implementation can be very flexible. It may shock you to learn that there are relatively low-cost options to starting a plan that we can help you with. One of the most basic questions that job hunting, quality employees ask a prospective firm is whether or not they have a retirement program. A 401 (k) plan is a flexible, tax-qualified, employer-sponsored retirement plan that workers can depend on to provide for their retirement years and employers can use as a means to distribute company stock to their employees. It is simply an arrangement whereby an employee may choose whether or not to defer a tax-free portion of their salary to a retirement savings plan. As an employer, you have the option to match or make separate additions to participate in these profit-sharing contributions. This savings plan benefits you and your employees to receive a lower tax bill and potentially far greater savings growth into the future. The amount deferred remains tax-free until it is withdrawn or distributed from the plan; this is why a 401 (k) plan is favored in America.
Simplified Employee Pension Plan:
A Simplified Employee Pension Plan is an effectual alternative for providing low cost retirement options for self-employed individuals and small business owners. Analogous to Profit Sharing Plans, SEP IRAs are subsidized solely by the employer whereby they contribute into a pool of funds set aside for an employee’s future benefit. They offer unrestricted contribution limits associated with larger retirement plans but with compliant arrangement distribution. Upon retirement, the pool of invested funds and earnings on the investments will provide an income just when they need it. Additionally, through SEP IRAS, employers are offered the option of consolidating their plan with Social Security proceeds which may result in higher equitable supplement contributions for employees earning above the social security wage.