Retirement plans are almost a necessity to attract top talent and retain your best employees. Offering 401k plans enables your people to save and invest for their own retirement, instead of the company investing for them.
Often, small businesses, already overburdened by high operating costs and small staffs, prefer to work with a third party administrator (TPA) to handle many of the administrative aspects of the plan. Retirement plans that include plan recordkeeping services remove the burden of finding their own recordkeeper or handling such plan administration themselves.
A turnkey plan provides a comprehensive package that costs little to administer and offers flexibility for when your company grows. A plan that offers a wide range of investment products is desirable for employees because they can make their own investment choices.
Benefits to the Employer
- Retain valued employees
- Recruit desired new hires
- Flexible plan design:
- Eligibility
- Plan Entry Dates
- Vesting Schedule
- Discretionary Employer Contributions
- Tax benefits for plan related expense
- Trustee services
- Minimal administrative involvement of the company’s time, personnel and resources
- Comprehensive plan reporting to plan sponsor
- Complete compliance reporting and government filings
- Competitive pricing
Benefits to the Employee
- Save for retirement with pre-tax contributions (before Federal Taxes are withheld)
- Employee can contribute in 2007 up to $15,500 or 100% of compensation
- Employee Catch-Up Contribution $5,000 for 2007 (applies to employees over age 50)
- Stop contributions at anytime
- Contributions grow tax deferred
- Dollar Cost Averaging
- Loans and Hardship withdrawals are available
- Distributions are portable
- Broad selection of top rated funds