Retirement Plans
Business Life Insurance
Group Insurance
Employer-Sponsored Programs
Financial Calculators
Retirement Plans
These days finding a good retirement plan is essential for employers seeking to attract and retain high-quality employees. Fortunately, there are a wide variety of plans available for businesses of every size.
SEP IRA
SIMPLE IRA
401(k)
403(b) Tax Sheltered Accounts
Other Retirement Plans
SEP IRA
A Simplified Employee Pension (SEP) plan is a type of Individual Retirement Account (IRA) designed for self-employed individuals and small business owners. A SEP-IRA is the simplest plan to establish and administer, making it a very attractive retirement plan for small businesses. Employers establish and contribute to an IRA for each eligible employee. After the employer makes a contribution, IRA rules control the employees' retirement account. The employer may contribute up to 15% of each employee's pay.1 Employees with SEP Plans created after 1996 are not allowed to make individual contributions.2 All contributions are 100% immediately vested.
A SEP-IRA might be a good option for your company if:
- You desire maximum flexibility in your contribution level from year to year (i.e., your business profits fluctuate each year)
- You do not mind that employees have immediate access to their retirement funds once you contribute to their IRA
- You wish to avoid annual IRS filings - No reporting is required for a SEP-IRA3
1 Limited in 2001 by Cost of Living Adjustment (COLA) of $170,000 or $25,500
2 Unless represents traditional IRA contributions.
3 If 5305-SEP is used.
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SIMPLE IRA Plan
SIMPLE is an acronym for the Savings Incentive Match Plan for Employees. It provides a simplified tax-favored retirement plan for small employers with fewer than 100 employees who earn $5,000* or more in compensation annually. Employees may defer a portion of their salary into the plan. Employers must either match a portion of the employee's contribution or make a contribution for all employees based on a percentage of compensation.
Contributions you make to your own SIMPLE IRA and to those of your employees are tax-deductible. All earnings in these accounts grow tax-deferred, meaning they are not taxed until they are withdrawn. However, withdrawals made before age 59 ½ may incur a 10% IRS penalty. Because SIMPLE IRAs don't require formal plan administration services, they are less costly and than other types of qualified retirement plans.
A SIMPLE IRA might be a good option for your company if you:
- Are looking for a low-cost retirement plan to help you attract and retain quality employees
- Offer no other retirement plan
- Have no more than 100 employees who earned $5,000 or more in compensation during the preceding calendar year
*Employees who have earned or expect to earn $5,000 for the year.
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401(k) Plan
A 401(k) is an employer-sponsored retirement plan that enables employees to defer a portion of their pre-tax income through salary reduction into a retirement savings plan. The 401(k) plan is popular with employees because it offers a convenient, tax-deferred way to increase their own retirement income. Participants are allowed to make their own investment selections from a variety of different investment options. The employer has the option to make "matching" contributions to the plan which often encourages participation. The employer may also choose to make a discretionary (profit sharing) contribution on behalf of all eligible employees.1
A 401(k) Plan might be a good choice for your company if:
- Your business is either for-profit or nonprofit (non-governmental) entity with more than 25 participants
- You want your employees to contribute to their retirement savings through a tax-deferred arrangement
- You want the option of "matching" your employees' deferral contributions
- You want the option to exclude part-time employees from the plan
- You want the option to select a vesting schedule for employer contributions
- You want the option of loan and/or hardship withdrawal provisions
1 If plan document allows profit-sharing contributions.
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403(b) Plan - Tax-Sheltered Account
A section 403(b) arrangement, otherwise known as a Tax Sheltered Account, is a defined contribution plan available only to employees of educational and certain non-profit organizations. The arrangement allows tax-deferred contributions to be made through voluntary salary reduction contributions. Sponsoring organizations may also contribute to the plan.
A 403(b) plan might be a good choice for your company if you:
- Work for a church, educational institution or non-profit organization under Section 501(c)(3)
- Want the option of loan1 and/or hardship withdrawal2 provisions
- Want your employees to contribute to their retirement savings through a tax-deferred arrangement
1 Generally only ERISA 403(b) plans allow loan provision.
2 Hardship withdrawals require a triggering event and must be qualified. See a tax advisor for details.
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Other Retirement Plans
There are other types of tax-deferred retirement plans available for your business in addition to those described above, such as Profit Sharing and Defined Benefit plans.
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Business Life Insurance
The loss of a key employee - whether it is because of an unexpected death or disability - can be crippling for a business. If you lose an important member of your team, business life insurance can cushion the blow and help your business return to normal as quickly as possible.
Our business life insurance products can provide for the financial needs of a business if the owner dies or becomes disabled. If a partner or owner in your company dies, the life insurance proceeds can be used to buy out the deceased partner's interest, ensuring that you will not be saddled with an unwanted partner or stockholder. And it also provides funds to attract and train a replacement to fill the spot left by a departed employee.
In addition, we can provide insurance for executive compensation arrangements. In a time when attracting and keeping top-level people is critical to success, this innovative coverage can help you maintain the talent you have by encouraging employee commitment through deferred-compensation arrangements and tax-favored plans that reward performance.
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Group Insurance
In today's competitive business environment, reducing costs can be an important survival strategy. One way in which some companies are saving money is by self-funding their health insurance. An important component of a self-funded healthcare plan is a highly specialized line of coverage known as stop loss coverage. Stop loss coverage provides protection if the liability for health claims exceeds either your individual or aggregate stop loss deductible.
We also offer a complete line of group life, short-term and long-term disability income insurance, and employee-choice products to cover the needs of employers and employees.
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Employer-Sponsored Programs
Employer-Sponsored Programs provide insurance coverage to employees at their place of work. These programs help employers attract and keep valuable employees by increasing employee satisfaction. They provide a wide range of benefits and can be paid through the convenience of payroll deduction. Some coverages are also available for the employees' family and in some cases products are guaranteed issue and portable, which means employees can keep their policy even if they terminate employment.
Our employer-sponsored programs include supplemental life and health insurance, as well as voluntary individual life and disability income insurance.
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