Employer Sponsored Retirement Plans

What is an employer sponsored retirement plan?

Generally, an employer sponsored retirement plan is a savings plan that an employer offers to the company’s employees.  Voluntary contributions to the plan may be deducted from the employee’s paycheck offering a systematic way to save.  The employer may match all or part of the employee’s contribution up to a certain level.  Funds grow tax deferred in the plan and the employee does not pay taxes on earnings¹ until they withdraw funds, usually during retirement. 

What types of plans are available?

Our Infinex Financial Advisor can help you identify the plan that most closely meets your needs.  We’ll help you consider the number of employees who may be eligible to participate, the investment options that are available, whether you’d like to make employer contributions and whether employees will have the opportunity to contribute. 

Two of the most popular options are the SEP IRA and the 401(k). 

SEP IRA

• May be most appropriate for self-employed individuals and smaller businesses
• Employer only contributions

401(k)

• May be most appropriate for larger businesses with more employees
• Employer and/or employee may contribute