Best Employee Retirement Plans to Provide


Retirement plans come in all packages, and your company has to have a good idea of what to provide your employees. The right retirement services are essential to any company’s benefits portfolio. These plans are necessary for every business because that support helps employees build financial stability for their later years. If you are looking for the right plans to offer for your staff, it is crucial to understand your options.

Retirement Plans and the Best Solutions

There are a few common solutions for retirement savings that you should consider.

Retirement Services for You and Your Spouse

If your business consists of you and your spouse right now, you still need to consider retirement planning. Since it is just the two of you, you can opt for a straightforward solution, such as an individual 401K.

These plans allow you to contribute up to 20 percent of your income to your retirement plan, with options for salary deferrals and higher aggregate limits than some other retirement solutions. Your spouse can contribute the same, and you can match their contributions as an employer.

Retirement Services You Can Easily Manage

As a sole proprietor, your time is valuable. You need to spend as much of it as possible ensuring productivity and minimizing the administrative work. That’s why you should consider SEP-IRA retirement plans for your small sole proprietorship. You establish a retirement fund for yourself as the business owner and individual funds for each employee.

These funds allow you to contribute up to 20 percent of your income to your personal fund, but you also must contribute the same percentage of each employee’s salary to their fund. You, as the employer, contribute to all of the funds. Your employees do not. It can be costly for your business if you have several employees, so consider the overall cost as you weigh your options.

Retirement Services Your Employees Can Contribute To

Suppose you want to establish a solution that your employees can choose to contribute to, consider something such as a Simple IRA. You need to employ fewer than 100 people to qualify for this type of plan. These employee retirement plans come with a lower contribution limit than some. Therefore, the limit applies to you as the business owner and your employees. In addition, employer contributions to each employee’s fund are much lower with these solutions, capping at just a couple of percent of their annual salary.

Retirement Services Separate From the Business

Sometimes small business retirement plan solutions need revision. They are an essential investment, but you may also want to supplement those funds. Combination solutions are often your best bet when you wonder how to find the best employee retirement plan. You can choose one of these plans for yourself and your staff, then contribute to a standard Roth IRA for yourself and your spouse.

Choosing the right retirement services often takes time and effort. Consider your retirement goals, the savings targets you have to meet those goals, and your company’s ability to contribute before you choose the right solution. Remember that any retirement plan you offer affects your company contributions.

About The Hilb Group

Deciding what coverage you need and what limits and deductibles make the most sense can be tricky. Founded in 2009, the Hilb Group has been helping clients to make sense of their options and make the smartest choices for their circumstances. Whether you need Warehouse Insurance or any other type of business or personal coverage, we encourage you to contact our friendly, experienced, and capable team today. Call us at (800) 776-3078 for a consultation.