fbpx Skip to Content

Employer Sponsored Retirement Plans

Your employees deserve a sense of security and confidence about their retirement. The Griggers Wealth Management team can help you compare plans and select the one most beneficial for you and your employees.

Defined Benefit Plans

Defined benefit plans guarantee a specified benefit your employees will receive when they reach retirement age. Using a formula to calculate the employee’s tenure and salary, a monthly payment is issues to the retired participant for the rest of their life. The employer is responsible for allocating the account’s investments. Examples of defined benefit plans and their payouts include:

  • Pension
  • Single or Joint Annuity
  • Lump-Sum

Defined Contribution Plans

Defined contribution plans give investment control to the employee. Each month, a percentage of pay is allocated to the account, and employees can allocate their investments as aggressively or conservatively as they wish.

Call Griggers Wealth Management to Get Started!

478-225-6750


Compare Retirement Plans

Simple IRA
401(k)
SEP-IRA
Overview
  • Separate IRA for each participant
  • Employer contributions are not taxable to employee and earnings accumulate tax deferred
  • Most plans are employee-directed, meaning allocating investments and associated risks fall on the employee
  • Employer contributions are not taxable to employee and earnings accumulate tax deferred
  • Most plans are employee-directed, meaning allocating investments and associated risks fall on the employee
  • Separate IRA for each participant
  • Employer contributions are not taxable
  • Earnings accumulate tax-deferred
  • Most plans are employee-directed, meaning allocating investments and associated risks fall on the employee
Contributions
  • Employees can elect to defer a percentage of their salary
  • Pre-taxed contributions lower taxable income
  • Elective contributions are matched to 3%
  • Employee elects to defer a portion of their salary
  • Amounts deferred are not subject to current income tax
  • Elective contributions are matched at a set percentage, on a per plan basis
  • Employee Contributions are limited to the lesser of 25% of income or an annually-fixed amount
  • Employer Contributions are limited to the lesser of 20% of income or an annually-fixed amount
Early Withdrawal
  • 25% penalty tax on withdrawals before age 59 ½
  • There are some exceptions to penalties
  • Earnings and contributions are taxed as ordinary income in the year received
  • A 10% penalty generally applies if withdrawals are made before age 59 ½
  • Employee elective contributions can be withdrawn for financial hardship
  • A 10% penalty generally applies if withdrawals are made before age 59 ½
  • Earnings and contributions are taxed as ordinary income in the year received
Retirement
  • Distributions must begin by April 1 of the year following the year the owner turns 72
  • Required minimum distribution rules applied
  • Earnings and contributions are taxed as ordinary income when received
  • Distributions must start on a specified date
  • Funds can be distributed as lump sum and periodic payments
  • Earnings and contributions are taxed as ordinary income when received
  • Distributions must begin by April 1 of the year following the year the owner turns 72
  • Required minimum distribution rules applied
  • Earnings and contributions are taxed as ordinary income when received
Death
  • IRA value is included in gross estate
  • Can pass proceeds to beneficiaries in varying time periods
  • Income and estate taxes can severely reduce IRA funds if left to a non-spousal beneficiary
  • 401(k) value is included in gross estate
  • Can pass proceeds to beneficiaries in varying time periods
  • Income and estate taxes can severely reduce 401(k) funds if left to a non-spousal beneficiary
  • IRA value is included in gross estate
  • Can pass proceeds to beneficiaries in varying time periods
  • Income and estate taxes can severely reduce IRA funds if left to a non-spousal beneficiary
Simple IRA
Overview
  • Separate IRA for each participant
  • Employer contributions are not taxable to employee and earnings accumulate tax deferred
  • Most plans are employee-directed, meaning allocating investments and associated risks fall on the employee
Contributions
  • Employees can elect to defer a percentage of their salary
  • Pre-taxed contributions lower taxable income
  • Elective contributions are matched to 3%
Early Withdrawal
  • 25% penalty tax on withdrawals before age 59 ½
  • There are some exceptions to penalties
  • Earnings and contributions are taxed as ordinary income in the year received
Retirement
  • Distributions must begin by April 1 of the year following the year the owner turns 72
  • Required minimum distribution rules applied
  • Earnings and contributions are taxed as ordinary income when received
Death
  • IRA value is included in gross estate
  • Can pass proceeds to beneficiaries in varying time periods
  • Income and estate taxes can severely reduce IRA funds if left to a non-spousal beneficiary
401(k)
Overview
  • Employer contributions are not taxable to employee and earnings accumulate tax deferred
  • Most plans are employee-directed, meaning allocating investments and associated risks fall on the employee
Contributions
  • Employee elects to defer a portion of their salary
  • Amounts deferred are not subject to current income tax
  • Elective contributions are matched at a set percentage, on a per plan basis
Early Withdrawal
  • A 10% penalty generally applies if withdrawals are made before age 59 ½
  • Employee elective contributions can be withdrawn for financial hardship
Retirement
  • Distributions must start on a specified date
  • Funds can be distributed as lump sum and periodic payments
  • Earnings and contributions are taxed as ordinary income when received
Death
  • 401(k) value is included in gross estate
  • Can pass proceeds to beneficiaries in varying time periods
  • Income and estate taxes can severely reduce 401(k) funds if left to a non-spousal beneficiary
SEP-IRA
Overview
  • Separate IRA for each participant
  • Employer contributions are not taxable
  • Earnings accumulate tax-deferred
  • Most plans are employee-directed, meaning allocating investments and associated risks fall on the employee
Contributions
  • Employee Contributions are limited to the lesser of 25% of income or an annually-fixed amount
  • Employer Contributions are limited to the lesser of 20% of income or an annually-fixed amount
Early Withdrawal
  • A 10% penalty generally applies if withdrawals are made before age 59 ½
  • Earnings and contributions are taxed as ordinary income in the year received
Retirement
  • Distributions must begin by April 1 of the year following the year the owner turns 72
  • Required minimum distribution rules applied
  • Earnings and contributions are taxed as ordinary income when received
Death
  • IRA value is included in gross estate
  • Can pass proceeds to beneficiaries in varying time periods
  • Income and estate taxes can severely reduce IRA funds if left to a non-spousal beneficiary

This information is not intended as authoritative guidance or tax or legal advice.


Other plans we offer access to:

  • Keogh Plans
  • Profit Sharing Plans
  • Stock Bonus Plans
  • Target Benefit Plans

Want help selecting the best plan for your employees?

Call us today at 478-225-6750!