Be a Hero with an Employer Retirement Plan
May 7, 2012
Employer Retirement Plans offer business owners the unique opportunity to compensate employees while decreasing tax liabilities for the business and the employee.
How? An employer-sponsored plan provides a means for business owners and employees to set aside money for retirement. In the example of a 401(k), contributions are automatically deducted from a paycheck before tax is figured. As a result, the overall income tax is calculated on a lower amount, making the total income tax burden lighter for the business and the employee.
Employees decide how much to contribute, up to the IRS limit, and how the money is invested within the options available in the plan. In the event an employee leaves the company, they can keep their contributions in the account or roll them over to another account. Some employers match employee contributions up to a percentage. These employer contributions can be subject to a vesting period determined by the business.
Retirement plan options include:
- 401(k) (including Safe Harbor Plans)
- 403(b) for non-profit organizations
- Profit sharing (including new comparability)
- Defined benefit
- Non-qualified deferred compensation
- SIMPLE IRA
The Trust and Asset Management Team at Home Federal Bank can customize an employer retirement plan, whether your organization is large or small. We do our homework, so you can offer employees the best retirement plans. You might just get a “World’s Best Boss” coffee mug.
Home Federal offers Personal Banking, Business Banking, Ag Lending , Home Loans, Trust and Asset Management, and Investments. With so much to offer, learn what Home Federal can do for you.