Green Bay Business Retirement Plan Consultants
Advisors Management Group offers Green Bay business owners retirement plans designed with business goals in mind. Finding the right structure for your company is one of the many financial services offered by AMG.
Our Green Bay business retirement plan consultants will analyze the organization, ownership structure, employee roster, current benefit plans, business goals, and personal retirement objectives. With these findings, we present options and guide you in choosing the one that best fits your needs.
Setting up a retirement plan for your organization is an excellent way to plan for the future of your business, your own retirement, and that of your employees.
Beyond providing that important layer of security, retirement plans offer several immediate benefits for small businesses.
Benefits for Green Bay Businesses With Retirement Plans
Retirement Plans Are Fully Tax-Deductible
The cost of offering and implementing a retirement plan at your small business is completely tax-deductible. This includes 401(k) plans, SEP IRA, Simple IRA, and any other small business retirement in Green Bay plan offered.
If your business opts to include a company contribution element to employee retirement accounts, that amount will serve as a tax reduction as well. Since the annual contribution limit for small business retirement plans is much higher than those of individual retirement savings accounts, there are additional benefits and income sheltering opportunities.
Employees Save on Taxes, Too
Small businesses are not the only ones who benefit from retirement plan tax savings. If you offer a retirement plan that allows your employees to defer part of their salary or wages into a retirement account and your employees take advantage of this benefit, they will see a reduction on their annual income taxes.
Most paycheck deferrals directed to retirement savings are taken out before taxes are factored in. This reduces both annual income and personal income tax. In fact, with most retirement plans, no taxes are applied until distributions are made.
Employee Engagement & Retention
If your Green Bay business offers an employer-sponsored retirement plan, it will most likely be the main source of retirement income for your employees.
By offering employees the opportunity to contribute to their retirement savings, a business is demonstrating the value they see in their employees and investing accordingly. This is especially effective if the business offers an employer contribution.
As your employees watch their retirement fund grow with each paycheck, they will feel both valued and secure, which increases engagement, productivity, and company morale.
Improved Recruiting for Green Bay Businesses with Retirement Plans
Hiring for small businesses can be challenging, more so now than ever. By offering candidates and potential employees the benefit of a retirement plan, your company can competitively recruit from larger corporations that are most assuredly offering 401(k) structured retirement plans.
Many employees would prefer working for a small, locally-owned business, but research has shown that employer retirement plans play a critical role in the decision-making process for talented candidates.
Types of Green Bay Small Business Retirement Plans
There are several optimal retirement plans for small businesses. Our team of Green Bay business retirement plan consultants will explain every part of the process including the legality, compliance requirements, and tax advantages of each retirement plan.
Small business retirement plans fall under one of two umbrellas: Defined Benefit Plans and Defined Contribution Plans.
Defined Benefit Plans
A defined benefit plan is a specific amount paid out to employees upon retirement. One common version of this plan is a pension. Defined benefit plans provide eligible employees with specific post-retirement income based on years of service and historic salary.
With these plans, employers are fully in control and take responsibility for the retirement investment, as well as the risk of investment return. This retirement plan structure requires careful administration and thoughtful investment procedures.
Defined Contribution Plan
A defined contribution plan allows employees to be the primary funder of their own investment plan and provides the option for employers to match employee contributions.
Most Green Bay small business retirement plans are defined contribution plans because they offer low employer risk, less administrative effort, and zero obligation after deposits have been made. With these plans, the employee is in the driver’s seat and responsible for the majority of contributions and investment choices. Typically, this includes a selection of mutual funds consisting of stocks, securities, and money market funds.
Our Green Bay business retirement plan consultants have a deep understanding of the benefits, specifics, and logistics of each defined contribution plan option. Some of these plans include:
- SIMPLE IRA
- SEP IRA
- 401(k) plans
- Profit-sharing plans
- Money purchase plans
- Employee stock ownership plans
Should my business use a defined benefit plan or defined contribution plan?
If you’re wondering which retirement plans for small business owners in Green Bay make the most sense, that is a decision you don’t have to make alone. Consider Advisors Management Group your retirement plan partner.
We will find the right retirement plan for you based on risk management plans, owner retirement goals, and employee structure.
Types of Green Bay Business Retirement Plans
The most commonly selected retirement plans among small businesses in Green Bay include:
SIMPLE IRA Plans
A SIMPLE IRA is a simple defined contribution plan that works well for small businesses with 100 or fewer employees. With this plan, employees can make pre-tax contributions to their SIMPLE IRA account within annual limitations.
This type of retirement plan requires the lowest commitment from employers and is an immediate vesting plan.
An SEP plan is a defined contribution plan available to any employer with one or more employees. The maximum contribution is significantly higher than that of a SIMPLE IRA and it is also an immediate vesting plan. SEP plans are fully tax-deductible for small businesses as they require employers to match employee contributions. One nice advantage of an SEP plan is that once adopted, they generally do not require annual IRS filing.
Within the 401(k) structure is:
- Traditional 401(k), which allows employees to contribute and gives employers the choice to match
- Individual or Solo 401(k), a great plan for sole proprietors
- Safe Harbor 401(k), a plan that passes nondiscrimination requirements
- Roth 401(k), which gives employees the advantage of tax-free withdrawals in exchange for post-tax contributions
In a profit-sharing plan, employees receive a portion of a company’s profits in the form of cash contributions or company stock. This portion is a predetermined percentage based on either quarterly performance or annual earnings.
Profit-sharing plans can be added to normal 401(k) plans and the structure of these plans can be altered year to year based on financial performance. These plans can serve as significant tax deductions and powerful employee incentives.
Your Retirement Plan Goals
If you are a Green Bay business owner looking for a retirement plan for yourself or your employees, Advisors Management Group is ready to assist you in finding a small business retirement plan that supports your overall financial goals.
Our consultants are well-versed in the benefits, commitments, tax breaks, and challenges of every small business retirement plan available. Whether you’re a sole proprietor or employing hundreds of full-time professionals, we will find and implement the most optimal retirement plan for your business.
Our Green Bay retirement plan consultants know the ins and outs of tax incentives and deductibles and will use that knowledge to benefit your small business.
Competitive Benefits vs. Higher Pay
Employment surveys have shown that candidates are looking for much more than a salary. Professionals are more apt to choose a company that offers a competitive salary, retirement plan, benefits package, and positive company culture than they are a business that simply offers the highest wage.
Save for Your Personal Retirement
The rules and regulations for owner contributions to small business retirement plans vary and can be most advantageous. In addition to choosing the plan that is best for your company, AMG has several Green Bay business owner retirement plans that will provide a bright and secure future outlook for you and your family.
Get in touch with a Green Bay business retirement plan consultant today.
If you are curious about what retirement plans are available for you and your small business, contact our Green Bay business retirement plan consultants today at (920) 434-2192 to set up a personalized retirement planning session.