Retirement Plans
Employee Benefits
Although private businesses in the US are not required to offer retirement plans, they are an essential part of benefits that help attract and retain talent. Tax-qualified retirement plans offer employers and employees a way to save and invest for retirement. Participants do not pay income taxes on the money deferred into the plan and employers receive a tax deduction for any matching contributions they make.
Tax Advantages
The Retirement Plans Startup Costs Tax Credit helps small businesses offer retirement plans to their employees. It allows businesses to take various credits for starting a retirement plan and for administration costs for the first three years of your plan. The matching contributions for employee deferrals are also tax deductible.
Types of Plans
There are a range of options available when determining what the best retirement plans are for your business. The most popular types include 401(k)s, Roth 401(k)s, SEP’s, and Simplified Retirement Plans. Each has its own benefits and limitations based upon its complexity and the size of the employer.
In addition to being the plan provider, BankChampaign acts as either the Directed Trustee or the Discretionary Trustee. As Directed Trustee we provide a selection of investment options to an employer who decides what to offer their employees. As Discretionary Trustee, we choose the list of investment options and assume the fiduciary liability that goes along with offering the plan to employees.
