Employers face a host of tough challenges running their businesses. Many choose to resolve one of their key challenges by seeking professional help for the management and protection of their employees' retirement assets. Hiring a trustee who knows how to deal with the complex intricacies of retirement law can spell the difference between success and failure for both the company and its workers.
The professionals in our corporate services group are well versed in the intricacies of retirement plan regulations. In our role as investment manager and trustee, we provide comprehensive solutions featuring:
- Consultation on plan design
- Sound investment options and funding policies
- Customized participant education
- IRS-approved prototype documents
- Plan installation
- IRS-mandated discrimination testing
- Record keeping
- Tax reporting
Most commonly used retirement plan:
- Profit Sharing Plans
No other qualified plan is so directly linked to company profitability, nor is any as flexible when it comes to giving an employer control of making plan contributions. The percentage rate for contributions can be adjusted from year to year or eliminated altogether in the absence of profits. Employees can be given the option to select their own investments and may be given borrowing privileges. When coupled with the proper vesting schedule, loyal employees are rewarded for their consistent contribution to the company's success.
- Pension Plans
Pension plans require the employer to make regular, annual contributions (regardless of profitability) predetermined by one of two formulas: 1) a set percentage of employee pay, or 2) an actuarial calculation aimed at providing the employee with a targeted retirement income. No other plan offers employees as much certainty with as few distractions. Integration with Social Security serves to benefit employees with wages over the SS-covered compensation level and reduce employer expense. Use of a properly drawn vesting schedule also moderates employer expense and effectively rewards employee loyalty.