Qualified plans were introduced as an employee benefit in 1875. They were designed to attract employees and stabilize the workforce. The early plans paid pension benefits after retirement for life. Around 1812, annuities became commercially available and were offered as another type of retirement benefit, but were introduced as an elective benefit, that would make payout benefits to the retiree for life. A survey provided by the Employee Benefit Research Institute put out some interesting facts about retirement plans. For business recruitment or work force turnover reduction it’s important to use employee incentive programs that include qualified plans. Employees need help in planning for their retirement. Accordingly, companies that sponsor retirement plans places them in a key position with employees, because these company sponsored plans have higher contribution levels than IRAs, and is an improvement over smaller plans when it comes to planning for retirement. The contribution limits for plans vary by income, plan type and age. Employers are in a unique position, where they can offer and sponsor a qualified plan to their employees. as a company benefit. There are many tax advantages of retirement plans. Some of the not tax advantages are (1) attracting and retaining employees, (2) improving employee moral and increase productivity, (3) plans may have a greater impact in the long run than a salary increase, (4) plans reward employees for their years of service.
There are many benefits to qualified plans and we will help you with the plan selection, your plan administrative relationships, provide support for employee education and help you manage your retirement plan. Just contact us if you have any questions