A pension plan is a retirement savings program sponsored by employers, designed to provide employees with a stable income after retirement.

• Defined Benefit Plans: Guarantee a specific monthly benefit at retirement, often based on salary and years of service.
• Defined Contribution Plans (e.g., 401(k)): Employees contribute a portion of their salary, sometimes matched by employers, with the final benefit depending on contributions and investment growth.

Common pension plan options include:

• 401(k) Plans: Popular defined contribution plans with potential employer matching.
• Defined Benefit Plans: Traditional pensions offering predictable retirement income.
• Cash Balance Plans: Hybrid plans that provide higher contribution limits for enhanced tax advantages.

• Attract and Retain Talent: Competitive retirement benefits draw skilled employees and reduce turnover.
• Tax Advantages: Contributions can be tax-deductible, improving the company’s financial position.
• Increase Employee Morale: Employees feel valued, leading to enhanced productivity.
• Differentiate Your Business: Stand out by offering robust retirement solutions.

Selecting a suitable plan depends on your company’s structure, financial goals, and employee needs. Our experts can guide you through options like:

• Safe Harbor 401(k): Simplifies compliance and encourages employee participation.
• Cash Balance Plans: Ideal for higher contributions and owners seeking bigger retirement savings.
• Defined Benefit Plans: Offer predictable, long-term retirement income.

We’ll work closely with you to create a plan that fits your company’s unique profile, ensuring employees receive meaningful benefits while you capitalize on tax advantages and long-term financial growth.

The company sets up a retirement plan, such as a 401(k) or Safe Harbor 401(k), laying the foundation for future employee savings and benefits.

Employees contribute a portion of their pay into the plan, building their retirement nest egg over time.

The employer may match employee contributions or offer profit-sharing, further enhancing retirement savings.

All contributions grow tax-deferred, allowing investments to compound over time and boost long-term savings.

Company contributions may be tax-deductible, lowering the employer’s taxable income and improving financial efficiency.

High-level employees and owners can often contribute more, benefiting from greater tax savings and larger retirement accumulations.

Small businesses may receive tax credits to offset startup and administrative costs during the early years of the plan.