Which Retirement Plan(s) are right for you?
We will help you design a customized retirement plan to fit your company’s unique needs which aligns with your organization’s goals.
“In my opinion, the worst 401(k) mistake is the failure to focus on employee outcomes. The ‘outcome’ should be for employees to have enough money to retire with confidence and financial security.”
Fred Reish
Partner, Faegre Drinker
401(k) Plans
The most prevalent plan type.
401(k)’s were established in the 70’s to help employees in America save for retirement on a tax deferred basis. With high contribution limits, and the ability to add a company match, this is the gold standard benefit in the retirement space. Most employers can’t afford to NOT offer them.
Most recent rules have added Roth 401(k) features for more dynamic savings opportunities for employees.
Individual 401(k)
Commonly referred to as the Solo-k, the Individual 401k is available to small business owners and their spouse.
Notable differences from group 401k plans: Individual 401(k) business owners may make contributions as both an employee and employer. This allows them to maximize retirement contributions and business deductions. Small business owners, where all owners are participants but have no common-law employees may utilize Individual 401(k) plans. Finally, spouses who derive income from the business may make contributions to the plan as well.
403(b) Plans
Similar to a 401(k) plan, but specific to the non-profit sector.
We are passionate about working with non-profit and other tax-exempt organizations to help establish and administer their ERISA-covered 403(b) plans. We also provide consulting to help employers determine if a move from a non-ERISA plan to an ERISA plan makes sense.
Cash Balance Plans
A great solution to accelerate retirement savings.
An increasingly popular form of qualified retirement plan, this “pension” type plan is often “layered” onto a company’s 401k and Profit Sharing for added tax-deferred savings and benefits for owners and employees. Best suited for companies with consistently strong annual cash flows looking for tax deductions and accelerated retirement savings.
Employee Stock Ownership Plans (ESOPs)
Increasing in popularity, a viable option if as a business owner, you need a succession plan, liquidity or diversification.
ESOPs are gaining in popularity. These qualified defined contribution plans can provide business owners with the following: liquidity, a succession plan, diversification, favorable tax provisions for C-corps and S-corps, and last but not least an employee productivity boost.