Best Employee Retirement Plans

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Starting an employee retirement plan is not too hard or expensive, even for small businesses.

Plus, these programs offer tax advantages to both the employees and the company, which leave more money in everyone’s account.

Offering such benefits is a great way to attract qualified candidates and gives your top talent a huge reason to stay.

The sooner you start the better.

First, I’ll walk you through the different types of employee retirement plans available. There are more than just 401(k) plans helping people save for post-career life, including some types that are specifically made for small businesses.

Then we’ll take a look at what to consider as you decide on which provider you want to manage your employee retirement plan.

There’s a little bit to know, sure, but a lot to be gained.

For almost everyone, retirement is the largest expense of their lifetime. By offering a plan to help them save, employers provide a much needed sense of security to employees thinking about their family’s future.

Keep reading to start getting better candidates, happier employees, and serious tax-breaks every year.

The Top 4 Options for Employee Retirement Plans

Guideline – Easiest way to start a 401(k)
Human Interest – Best 401(k) for small to midsize organizations
Nationwide – Best for large organizations
Vanguard – Best SIMPLE IRA

The Different Types of Employee Retirement Plans

In terms of picking an appropriate type of employee retirement plan, employers need to pay attention to a few important details.

For all the tax law and government regulations involved, the choice comes down to the basic structure of each plan, which doesn’t take an MBA to understand.

Plus, after partnering with a good coverage provider, you’ll have someone to help you close gaps in knowledge, forecast what each plan will realize in the years to come, and steer you toward a more appropriate plan if it’s not the right fit.

Let’s dig in.

Qualified employee retirement plans—that is, those that have tax advantages—fall in two major categories, only one of which is used widely today:

Defined benefits plans are managed entirely by employers. These are also known as pensions and pay out a set benefit each month. These were really popular until the 1980s, but are being phased out because of how expensive they are for employers to maintain.
Defined contribution plans are much more common today. With these plans, employees contribute money from each paycheck toward their retirement. Companies may choose to match employee contributions, as well.

The amount that employees contribute, the company contributes, and how that money is taxed varies from plan to plan. Companies have some flexibility in how they enact each plan, but many of the basic rules and limits are set by the federal government.

Important note: Plans have different limits for how much employees and employers can contribute each year. These limits change periodically because the government adjusts for cost-of-living increases. The IRS provides current limitations on …read more

Source:: Kiss Metrics Blog