Are you considering starting a retirement plan for your business? Selecting the right retirement plan solution for your company and employees can be not only confusing but also extremely time and effort consuming. Designing and managing retirement plans for your employees poses complex challenges and risks. Your plans must meet employee expectations and also follow specific fiduciary guidelines as mandated by the Employee Retirement Income Security Act (ERISA) and the Department of Labor. Why not choose the company that does more than just show up at enrollment time and then vanish? We are here to help with plan design, implementation and facilitation for all of our business clients.
Or do you currently have a company retirement plan and are considering selecting a new advisor? Business owners who manage company retirement plans should routinely analyze the performance and associated costs. ASIA can provide a through assessment of your company plan and provide reccomendations if needed.
In addition, we provide education and administrative support to company plan sponsors and employees. It’s very important that people fully understand their retirement plan because to us, whether you have one or many employees, the plan you choose will only be a success if every participant reaches his or her retirement goal.
Deciding which plan works best for your company is easier when you break it down into two categories – those with employees and those without.
Companies with no employees – If your business has no employees except your spouse, your choice depends upon these questions: How much do you need to save for retirement? And how much of a tax deduction would you like for this year? There are three plans that may meet your needs:
- SEP IRA
- Owner-only 401(k)
- Owner-only Defined Benefit
Companies with employees – If you have employees, you face two key questions: How much can you contribute for yourself? And what is the appropriate amount to contribute for your employees? There are two basic choices:
- SIMPLE IRA
- Safe Harbor 401(k)
Virtually all retirement plans offer three key features:
Tax-deferred earnings – When you invest in a “tax-qualified” retirement plan, you’ll pay no taxes on your earnings until you start taking withdrawals. Consequently, your earnings can grow faster than they would if placed in an investment on which you paid income taxes every year.
Tax-deductible contributions – Because you generally put “pre-tax” dollars into your retirement plan, your plan contributions will lower your adjusted gross income. As a result, you may lower your annual tax bill.
A variety of investment options – You can fund your retirement plan with an array of investments: stocks, bonds, mutual funds, government securities and more.
Other options include:
- 401(k) Plans
- 403(b) Plans
- 457(b) Plans
Your company retirement plan – Once you’ve chosen the right retirement plan for your business and employees, we’ll be there to provide comprehensive education on retirement planning and investing, also to answer any questions or concerns you or your employees may have. We will periodically review your plan as well and make any necessary changes as needed.
ASIA, its employees and financial advisors cannot provide tax or legal advice. Please consult your attorney or qualified tax advisor regarding your particular situation.