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 earnings until they withdraw funds, usually during retirement. 

What types of plans are available?

Our Osaic Financial Team 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.

SEP IRA

Same percentage of pay contributed to each eligible employee. Contributions are not required every year.

401(k)

Participants fund the plan. Employers can also choose to contribute as an incentive. Safe Harbor and SIMPLE 401(k) plans can simplify employer requirements.

Simple IRA

Participants fund the plan, and the employer is required to contribute a specific percentage as well. Funds are immediately vested.

Employee IRA Rollovers

Employees generally have several options when leaving an employer plan, including leaving assets in the former employer plan, rolling to a new employer plan, rolling to an IRA, or taking a distribution (taxes and penalties may apply). Fees, services, investment options, creditor protections, and tax implications vary by option.