After years of hard work and dedication, the time comes for a well-deserved retirement. There are many different types of employee retirement plans, but they aren’t one-size-fits-all options. Depending on the size of your company, your business priorities, and the demographics of your employees, some packages may suit your company’s needs better than others.
There are several reasons that small businesses can benefit from offering employee retirement plans. From retaining quality employees to receiving significant tax deductions, offering your employees a solid plan for retirement is a great step towards the success of your business.
For small business owners, the prospect of offering employee retirement plans can be daunting. But with our team of employee benefits experts, locking in the right plan for you and your employees can be a stress-free and rewarding process.
Employee Retirement Plans
There are 5 main types of employer-sponsored retirement plans. The most commonly used one is the 401k plan, where employees can control how their money is invested while under supervision from the employer. This option is the most popular choice in the market, seeing as employees aren’t required to contribute, and the plan itself is less expensive than most other options.
Then, there’s the MyRA plan. With an incredibly low deposit requirement and a contribution as little as $5 per pay period, the MyRA plan is a simple, cost-effective option for small business owners and employees alike.
Similarly, there’s the SEP-IRA option. This plan is a “one for all” deal, where the employer is required to file for all employees. SEP-IRAs are also notoriously flexible, seeing as contributions are not required yearly. Any amount (or none at all) can be contributed on your time, depending on the circumstances of your business. A simple IRA option is also available, but is a better fit for companies of 100 employees or less.
Another option is the Solo 401k plan. This option is great for really small companies or self-employed individuals who don’t make the required dollar amount to reap the benefits of a SEP-IRA.
Finally, there are Defined Benefit plans. These plans typically have set benefits for employees based on their income and tenure. While the employees are able to invest under a Defined Benefit plan, the risk all falls on the employer. Additionally, this old-fashioned employee retirement plan offers the opportunity to reduce the amount of taxes paid come April.
There are many different options for retirement plans available, but selecting the right one is a very individualized process. That’s what our team at LHUI is here for.
LHUI Can Help You Choose The Right Employee Retirement Plan
When it comes to selecting the best employee retirement plans, the decision isn’t always straightforward. At LHUI, we strive to make sure that each company and its employees that we serve receive the best services based on their individual needs. We offer in-depth consultations to ensure that every need for each client is met, and that the decisions our clients make are well-informed.
Our business is built on long-lasting, strategic partnerships. We work with some of the Northwest’s leading providers to make sure that your business has access to the best services possible. It’s these strong foundational partnerships that allow us to give you and your company the best deal, and remain a leader in the employee benefit market.
We aren’t just another employee benefits company. At LHUI, we specialize in helping owners of small businesses with their human resources needs, and their planning for the future. Based in the Snohomish County area, we are just a phone call away. Call and schedule a consultation today - We can’t wait to meet you!