Help your team achieve their long-term financial goals

A retirement savings plan is a financial account dedicated to helping an individual save for retirement. There are different types of retirement savings plans, including 401(k) plans and 403(b) plans. Retirement plans typically offer tax-advantaged investment growth, but account holders must follow contribution limits and withdrawal rules, including early withdrawal penalties. Many retirement savings plans are employer sponsored, and employers may provide contribution matching to help their employees boost savings and to incentivize contributions.

Many American workers are behind on their retirement savings and worried about the future. A retirement savings plan can help them catch up in a tax-advantaged way. In addition to preparing them for the future, this can also relieve current financial stress and promote well-being.

Some of the most popular business retirement plans include 401(k), SIMPLE IRA, and SEP IRA plans. A retirement benefits advisor can provide you with more in-depth information about these and other custom retirement savings plans, but here are some basic facts:

• A 401(k) plan is a type of retirement plan that allows employees to make contributions, and employers may provide contribution-matching. There are multiple types of 401(k) plans. In a traditional 401(k) plan, contributions are made with pre-tax dollars, reducing the worker’s taxable income, but the withdrawals are taxed. In a Roth 401(k) plan, contributions are made with after-tax income, but the withdrawals are not taxed. A SIMPLE 401(k) plan is designed for small businesses and is not subject to annual nondiscrimination tests. With some types of 401(k) plans, employers can impose a vesting schedule that allows them to claw back their contributions if the employee leaves the company before becoming fully vested, but SIMPLE and Safe Habor 401(k) plans require employers to make fully vested contributions.
• A SIMPLE IRA plan is a type of retirement plan designed for small businesses that do not currently have another retirement plan. It’s a streamlined option with no filing requirement for the employer. The employer must provide contribution matching, employees can elect to contribute, and the employee has full ownership of the money.
• A SEP IRA is a type of retirement plan that is available to businesses of all sizes, including self-employed workers. There are no filing requirements for the employer. Only the employer contributes to the account, and the employee has full ownership of the funds.

Yes, Mavrix can help you set up a 401(k) for your small business. We will help you compare your options, including the SIMPLE 401(k) and other small business retirement plans, so you can select a plan that meets the needs of your company and your workers.

When workers quit, it’s often to pursue better compensation with another company. Employee benefits, including retirement benefits, are a critical part of total employee compensation. When you give your employees a retirement plan, you give them another reason to stay with your company.

The retirement plan administrator oversees management of employee and employer contributions, funds and distributions, as well as record-keeping, employee communication, and compliance with various regulations. Small businesses frequently hire third-party administrators to handle these 401(k) administration services.

If you’re interested in providing a retirement plan for your workers, the next step is to work with a retirement plan advisor. Mavrix offers retirement benefits consulting, and we can help you every step of the way, from plan selection to implementation.