Planning for a comfortable retirement is one of the most important long-term financial decisions businesses and employees will have to make. Businesses who offer retirement benefits will immediately experience the benefits of being able to better attract/maintain employees, while also taking financial advantage of any available tax credits. Professional retirement planning helps business owners and employees to feel more secure, which helps the long-term health of the organization.
Why Businesses Should Offer Retirement Plans
Many successful businesses offer retirement plans to their employees. This appealing incentive allows for employees to feel more comfortable and appreciated within the company. The long-term security provided by retirement plans encourages employees to perform at their best, making the company more successful as a whole.
In addition to making your workforce feel more comfortable and secure within your business, organizations may be able to take advantage of certain tax benefits that are provided to companies who offer retirement options to its personnel.
IFG’s Retirement Plans
When it comes to planning for which type of retirement plan you want to utilize for yourself, or offer to your employees, understanding the unique purposes and benefits of different retirement plans is essential. IFG offers consulting services that will help you or your staff to get organized for retirement. Our retirement plans include:
- Profit Sharing Plans*
- Tax Deferred Annuity
- 529 College Savings*
- Deferred Compensation
- Custom Strategies
- Financial Consulting
A 401(K) is one of the more commonly offered types of retirement plans. A well thought out 401(K) plan can assist organizations in attracting and retaining the employees they need in order to thrive. Under a 401(K) structure, the participant is permitted to determine how much will be contributed to their accounts. The employer offering the 401(K) will also be eligible to receive a tax deduction based upon the total amount that is contributed. 401(K) plans can benefit a range of different employees including lower tier, mid-level, as well as owners and/or managers. The contributions that are allocated toward a 401(K) plan may grow through stocks, bonds, money market funds, mutual funds, saving accounts, and other types of investment vehicles.
Another appeal of 401(K) plans is that contributions and earnings are typically not taxed by the Federal Government or State government (in most cases) until they are officially distributed. Participants may also be eligible to keep their benefits should they leave a company. This benefits the employee while also lessening the administrative responsibilities of the employer. For more information please visit our page on 401(K) plans.
Profit Sharing Plans
Profit Sharing Plans also offer employers a way to entice and maintain talented employees. A key element of profit sharing plans is that contributions made are discretionary. This means that the employer can choose when contributions are made and what amount is to be contributed. This type of structure provides employers with better flexibility overall. Similar to the 401(K), contributions to a profit sharing plan can grow through a variety of investment vehicles and, contributions or earning are generally not taxed by Federal or State governments until they are actually distributed.
An additional appeal of profit sharing plans is that participants will be permitted to take their benefits with them should they leave the company. This helps employees to feel better about their future, while also decreasing the amount of required administration. To learn more about this type of plan, please visit our page on Profit Sharing Plans.
Tax Deferred Annuity
A Tax Deferred Annuity is a type of annuity contract that is designed to help delay the payment of certain incomes, installments, or a lump sum until the investor makes a decision to receive them. There are two primary phases to this type of annuity contract: the savings phase and the income phase.
During the savings phase, funds are invested into the account. During the income phase, the plan will be converted into an actual annuity and then payments will be received. Deferred annuity plans can also be designed to be either variable or fixed. For more information, please visit our Tax Deferred Annuity page.
There are situations when a traditional profit sharing plan may not meet an organization’s needs. In these instances, IFG can help to implement a custom strategy that may include the use of new comparability plans. These types of plans are similar to standard profit sharing plans and can be added to current/existing 401(K) plans to help bolster annual retirement savings. Due to their design, these plans have been proven to be especially beneficial for smaller businesses. If you would like additional information, please visit our Custom Strategies page.
For individuals who have reached a certain level of income, maximizing contributions may not actually provide enough income during retirement to replace previous earnings. Maintaining a comfortable level of income during retirement is an important and achievable goal. IFG offers Financial Consulting and planning services that will help ensure you will feel great about your finances when you are ready to retire. For more information, please visit our Financial Consulting page.
529 College Savings
Financial planning for the future can help you or a loved one reach future educational goals. A 529 plan, also known as a 529 College Savings plan, is set up to encourage saving for the future costs of college. A 529 is legally known as “qualified tuition plans” and is a tax-advantaged savings plan which is sponsored by states, state agencies, or even educational institutions. These plans are given authority by Section 529 of the Internal Revenue Code. Each state will determine its own structure and type of investments are offered for a 529 plan.
529 Plans are subject to investment risk, including possible loss of principal. Before investing, carefully consider the investment objectives, risks, limitations, charges and expenses of the product and its underlying investment options. This information can be found in the product and investment option Official Statement. Official Statements can be obtained by calling our office. Please read carefully before investing. To learn more about a 529 plan, please visit our page on 529 College Savings.
Deferred Compensation is a specific type of income that will be awarded at a future date after it has been earned. The Internal Revenue Service (IRS) has outlined clear tax regulations for individuals who receive deferred compensation. There are several types of deferred compensation available, each with their own set of rules and guidelines. Some of the common financial vehicles for deferred compensation may include retirement plans, pensions, and/or stock options. The most compelling benefit of deferred compensation is the deferral of taxes. But, the benefit of the long-term security it can provide to participants should not be ignored. For more information about this, please visit our Deferred Compensation page.
IFG’s Trusted Retirement Professionals
Setting up the right retirement strategy for yourself or your employees may seem overwhelming, but working with IFG’s experienced retirement professionals removes the stress and confusion from the retirement planning process. Our dedicated team will work with your organization to provide assistance with the following essential processes:
- Provider comparison and selection
- Profit-sharing options, Safe Harbor plans, etc.
- Plan promotion and enrollment
- Fund selection via investment models
- Fund performance evaluation via third-party consultants
- Professional Guidance and Advising
Our retirement professionals understand the importance of guidance when it comes to retirement planning. We advise on:
- The importance/value of investing into retirement
- How much they should invest
- The best strategy for investing
Ameritas Galaxy Accounts
The Galaxy program is a flexible, fee-based investment management strategy offered by Ameritas Investment Corp. (AIC). Galaxy enables you to take advantage of proven asset allocation strategies while benefiting from the professional guidance of IFG. Your unique circumstances and personal objectives dictate the method of investing as well as the types of vehicles chosen to help achieve them.
Securities and investment advisory services are offered solely through Ameritas Investment Corp. (AIC). Member FINRA/SIPC. AIC and IFG are not affiliated. Additional products and services may be available through IFG that are not offered through AIC. Securities products are limited to residents of Virginia.
This is not an offer of securities in any jurisdiction, nor is it specifically directed to a resident of any jurisdiction. As with any security, request a prospectus from your Registered Representative. Read it carefully before you invest or send money. A Representative from IFG will contact you to provide requested information. Representatives of AIC do not provide tax or legal advice. Please consult your tax advisor or attorney regarding your situation.