3 Benefits of our Retirement Plan Services
The best possible retirement plan for your employees is a critical factor in attracting and retaining quality staff members. Both employees and employers can save for the future, enjoy various tax benefits and it serves as an ideal way to keep your team happy.
But as a business owner, your expertise is running your company, not in retirement plans. That’s where our retirement plan services team comes into play. While your priority list is a mile long with your business, we can create a plan that works best for your company and your employees.
It’s a simple, convenient and efficient turnkey experience that includes a number of advantages, including these three benefits:
- One-Stop Shop
With our retirement plan services, a separate record-keeper, administrator and investment company aren’t necessary. What we provide is all-encompassing, making it a true one-stop shop.
Our services are all-inclusive, from plan review and design, to assisting in employee enrollment to all the necessary documentation. Instead of relying on a different company to do each, we manage it all, removing any guesswork and allowing the business owner to focus on their company.
The relationship is a true partnership, and we have a fiduciary responsibility to the plan and the plan participants. As a result, we act solely in their best interest.
We help employees enroll, handle all of the accounting when it comes to the participant’s records, prepare year-end materials and compliance testing, and take care of Form 5500 filing (for qualified retirement plans). That’s in addition to making sure it’s the right retirement plan for the business and its employees.
- A Variety of Options
The most common retirement plans are Simplified Employee Pension (SEP) IRA, SIMPLE IRA and 401k plans. Finding the right plan is dependent on the company goals and interests of the employees.
SEP IRA: This plan and the SIMPLE IRA require the least amount of administration and paperwork, and the SEP is completely funded by the company. This IRA is for self-employed workers, or business owners with few or no employees. The amount contributed is the same percentage of compensation to all employees. You can’t exclude anyone from sharing in the allocation and once the contribution is made, the employee has full control over the IRA. Only employers make contributions to a SEP, and a major advantage versus other IRAs is the higher contribution limit per year up to 25% of an employees pay.
SIMPLE IRA: With this plan, the employee makes retirement savings deposits and the company has a matching contribution. The limit for an employee in 2019 is $13,000, and if they are 50 or older, they can deposit an additional $3,000. The business matches 3% of the deferred compensation by the employee, taking tax deductions for the company’s contributions as well. Like the SEP, a SIMPLE IRA gives the employee full control of the account. Many small business owners enjoy the idea that the employee has to participate in the plan to receive a company contribution. The administration of this plan is streamlined, so it’s more cost-effective, meaning a lower cost to the plan sponsor as well.
401K PLAN: This allows more flexibility to the employer to control how the plan will operate, but it also has the most rules to follow. There is annual financial reporting for the plan as well. But with this option, the plan sponsor designs something that can work for their employee base. The company creates provisions for who is included in the plan, what type of contributions are made to the plan and limit when an employee takes a distribution. For a business owner who has a number of employees who are part-time or don’t work more than 1,000 hours a year, this plan may be an ideal option.
There is also a retirement plan tax credit available to small businesses who start a plan. The credit is 50% of the startup costs up to a maximum of $500 and available for the first three years of the plan. It’s another significant benefit for a business owner starting or changing retirement plans.
- All in the Details
By taking a personal interest in a business and the plan participants, it means a personal touch that might not be available elsewhere.
That entails little details like employee meetings at 6 a.m. or midnight with shift operators to help explain the retirement plan. It includes offering the bank’s full scope of services, or bringing our bankers to your business to speak to employees about something like budgeting.
In short, we’re not just a bank taking care of a businesses’ retirement needs, though our goal certainly includes that. We’re an employer’s all-encompassing financial resource.
Because we handle the full retirement plan from A-Z, we also pick up on all the small details that might make a plan work better. Your information isn’t passed from one entity to another. It all stays with us and we dissect what’s working and what may need changed.
If we see something that doesn’t make sense or an area where an adjustment could lead to a better result, we’ll look into it. We talk to you, find a solution and, if necessary, even change the plan.
The personal touch is important and beneficial for all parties. Those details equal a more successful plan for a business and its employers, and that’s what matters to us.
A strong retirement plan can be a major benefit to attract and keep employees. If it’s time to talk to a professional about what options are available to your business, our retirement plan services team can answer your questions and find a plan that best suits your needs. Please call us at 888-474-7275 and we can tell you more about the extensive services we offer.
Investments are not FDIC insured, not bank guaranteed, and may lose value.