Small Business Retirement Plans

 

In today's economy, it is extremely important to offer employees a comprehensive benefit plan that meets their needs at an affordable cost.  Recent tax legislation and technological advances have created several new and exciting opportunities for small businesses to provide innovative retirement plans with reduced fiduciary risk.

Having the right company sponsored retirement plan helps to attract and retain highly qualified employees.  The Principals of Ridgecrest Capital can help you design a retirement plan that meets the needs of your employees and reduces your fiduciary risk at the same time. 

As you are probably aware, there are many different types of company sponsored retirement plans available to choose from.  Most are either Individual Retirement Arrangements (IRA's), defined contribution (DC) plans, or defined benefit (DB) plans.  Some examples include:

  • Simple IRA
  • SEP IRA
  • 401(k)
  • Safe Harbor 401(k)
  • Profit Sharing Plan
  • Cash Balance Plan

IRA and DC plans do not promise a specific amount of benefit at retirement.  Instead, employees or their employer (or both) contribute to employee's individual accounts.  At retirement, an employee receives the accumulated contributions plus earnings (or minus losses) on the invested contributions.

DB plans, however, promise a specified benefit at retirement.  The amount of the benefit (for example $1,000 per month) is often based upon a formula taking into account the employee's years of service and base pay.  Employer contributions must be sufficient to fund promised benefits.

No two companies are exactly alike and neither should your company sponsored retirement plans.  Take a few minutes and call us at Ridgecrest Capital to see if we can help you improve the benefits you provide to your employees.  Initial consultations are confidential, without obligation, and free of charge.