PLAN TYPE GUIDES

Plan Types Guides (Our Approach to Retirement Planning)

Our approach to retirement planning focuses on creating a robust retirement program that improves plan health and encourages active employee participation. Here's how we do it:

Automatic Enrollment: We make retirement savings the default option by automatically enrolling employees. This simple change can significantly increase participation rates.

Higher Minimum Deferral Rates: We set the default contribution rate at a level that ensures employees build a solid financial foundation from the start, providing them with a sense of security.

Automatic Deferral Escalation: Contribution rates increase yearly, encouraging employees to save more gradually over time without taking action.

Employer Matching Programs: Implementing employer matching programs further incentivizes employee contributions, boosting overall savings.

Eliminating Loans and Hardship Provisions: We remove these options to prevent potential leakage from retirement savings and encourage long-term saving behavior.

Our proprietary technology supports these efforts by simplifying enrollment and providing clear investment options. Through automation, employees are guided toward building retirement assets while still having the freedom to make their own choices. This proactive approach boosts participation and improves employees' financial well-being in the long run.

Plan Types:

Employer-sponsored retirement plans offer various options tailored to meet diverse needs:

• 401(k) Plans are popular for their flexibility. They allow both employees and employers to contribute pre-tax funds, often with matching options.
  
• Pooled Employer Plans (PEPs): These simplified 401(k) plans administered by professional providers are ideal for reducing administrative burdens.
  
• SIMPLE IRA Plans: Designed for small businesses, allowing employee and employer contributions with simplified administration.
  
• SEP Plans: Suited for self-employed or small business owners, enabling employer contributions without employee elective contributions.
  
• Profit-Sharing Plans (PSPs): These plans reward employees based on company performance, with employer contributions only and flexibility in timing.
  
• Employee Stock Ownership Plans (ESOPs): Reward employees with stock ownership, promoting company loyalty and offering tax benefits.
  
• 457 Plans: These plans are offered by governmental and non-profit employers and are similar to 401(k) plans but with different regulatory standards.
  
• 403(b) Plans: Exclusively for certain employees of public schools and tax-exempt organizations, allowing salary deferrals.
  
• Cash-balance plans: Ideal for older employees with high savings goals, offering high contribution limits and pre-tax savings.
  
• Non-qualified deferred Compensation (NQDC) Plans Allow employees to defer compensation to future tax years, with stringent requirements and irrevocable elections.
  
• Roth IRA: Like a traditional IRA, funded with after-tax income, the earnings within the account grow tax deferred.
  

By offering a range of plan types and employing our proactive approach, we ensure that employees can confidently secure their retirement success from day one.