New Plans
There are several different types of employer sponsored retirement plans. For example: IRAs, 401(k)s, and profit sharing plans. It is crucial that new retirement plans are organized and set up correctly. A plan that is not setup correctly and/or doesn't fit your company well can cause problems, heartach, and be expensive to fix.
Willow Ridge Capital Advisors will help guide you through the options so that you can choose the type of plan that is right for you and your employees. Although we are not an administrator, we work with several different plan providers that offer excellent service at minimal cost. Since we DO NOT receive any commissions from them, you can trust that we are acting in your best interests and our recommendations are unbiased and objective.
Why Provide a Retirement Plan?
Studies have been done to determine if employees care whether or not an employer offers a retirement plan. Concerning 401(k)s, one study showed that “64% of employees of small businesses said a 401(k) plan is an important benefit that employers should be obligated to offer. And nearly 40% of employees indicated they would leave their current job for one that provided a 401(k) (Online 401(k))."
Retirement plans can benefit both plan sponsor and participants in many ways. Benefits to plan sponsors include:
- Attract and recruit highly skilled employees
- Incent and retain your existing employees
- Employer contributions to most plans are tax deductable
- Offers incentives to a mix of rank-and-file employees and owner/managers
Benefits to retirement plan participants include:
- Employer match contributions offer instant returns to plan participants
- Contributions are generally made on a before-tax basis, lowering participant's taxable income
- Compounded tax-deferred earnings help grow the account faster
- Account earnings and gains grow tax deferred until distributions are taken out
- Most plans allow employees to roll their 401(k) into an IRA or into another 401(k) if they leave the company