Pick the Right Small Business 401k Plan & Enjoy Great Benefits

Today, every person wants to save their hard-earned money for the retirement. One big question haunts in his/her mind where he or she should invest money. In the present time, there are numerous retirement plans available that offer a host of benefits. One of the best retirement plans is small business 401k plan. It is a special type of plan that will help you gear up financially for the future. You can enjoy numerous benefits if it is given by your company. By investing in this plan, you will not only get good income after retirement, but you can also enjoy tax benefits.

This can be the good option for you as compared to a traditional pension plan. On the other hand, if you are a business owner, then you can retain your loyal employees by offering them these plans. Considering how to get started a good retirement plan for your business? Consult with Life, Inc. Retirement Services today! We understand how complex and overwhelming can be managing and establishing retirement plans. Being amongst the best 401k providers for small business, we will help make the entire process simpler and seamless for you. Our company has expertise in top quality and comprehensive designs for good retirement savings.

No matter, who you are – a financial advisor, solo practitioner, corporation or a small business, you can approach us for customized solutions. Since inception, we offer our services to different types of clients. We specialize in numerous areas, for instance, advisory services, employee education and retirement administration. What’s more, we have local contacts that will support you and your employees to pick the best 401k for small business. Providing comprehensive and customized retirement solutions to corporations and companies is our topmost concern. If you don’t know which plan will be the most suitable for you, then you should use our retirement plan evaluator to get the right guidance. To all the customers, we offer the best advisory services so that they can make the best decision as per their specific situation. So, what are your plans? Simply get in touch with us now to schedule a consultation!

Investing In Retirement Plans Is A Good Way to Retain Employees

A business needs many resources to get established and run over time, human resources are one of them. It is the employees who can make or break a business as this is a resource that cannot be duplicated. Employees are the source of competitive advantage for any organization. This makes it important to take care of them, which can be In the form of many benefits including retirement benefits.

Kinds of Retirement Plans

There are a number of retirement plans to invest in one has to choose carefully, some of them are:

•   Traditional IRAs
•   401(k) plans
•   Simplified Employee Pensions (SEP) plans
•   Cash balance plan

Managing Retirement Plans of Employees for Your Company

Many companies have come up with the service of chalking out and managing the retirement plan of an organization, according to the size and requirement of that organization. These companies are outsourced to provide tailor-made solutions to their client companies which need to be simple and fully managed by them. To make it further efficient local point of contact is organized.

Types of Retirement Plans

U.S. Department of labor refers to two type of retirement plan:

•   Defined benefit plan
•   Defined contribution plan

A cash balance plan is also called ‘hybrid plan’ as this consists of elements of both the contribution plan and defined benefit plan. Cash balance plans are ideal for businesses having a steady revenue through a successful business. This plan provides a good retirement savings option for these business owners as well as substantial tax benefits.

Each participant is Benefitted in Two Ways

•   Contribution credit
•   An interest credit rate

Investment risk is borne solely by the employer.

What Is Safe Harbor 401 (K) Plan

This is a retirement plan which is sponsored by employers and helps small business to avoid annual IRS compliance tests. Safe harbor 401(k) plans allow equal benefit to all it’s employees and access to this plan.

Many companies are simplifying retirement planning for other different sizes of businesses, by being low cost 401(k) providers and managing them entirely.