Business Retirement Plans

Comprehensive retirement plan solutions for businesses of all sizes.

Retirement Solutions for Your Business

Offering a retirement plan is one of the most valuable benefits you can provide to your employees. At Vincent D. Jacobs Wealth Management, we understand that implementing and managing a retirement plan for your business involves many considerations, from plan design and investment selection to regulatory compliance and employee education.

We work with businesses of all sizes to design and implement retirement plans that align with their goals, whether that's attracting and retaining talent, maximizing tax benefits, or providing for the retirement security of owners and employees. Our comprehensive approach ensures that your retirement plan not only meets regulatory requirements but also serves the needs of your business and employees.

Our Business Retirement Plan Services

We provide end-to-end support for your business retirement plan, including:

  • Plan design and implementation
  • Investment selection and monitoring
  • Regulatory compliance support
  • Employee education and enrollment
  • Plan reviews and benchmarking
  • Fiduciary guidance
Business Retirement Plans

Retirement Plan Options

Finding the right retirement plan for your business.

401(k) Plans

A 401(k) plan is a qualified retirement plan that allows employees to contribute a portion of their wages to individual accounts. These plans are popular among businesses of all sizes due to their flexibility and features.

Key Features:

  • Higher contribution limits compared to many other retirement plans
  • Flexible employer contribution options (matching, profit-sharing, or both)
  • Roth 401(k) options available
  • Loan provisions and hardship withdrawals can be included
  • Vesting schedules for employer contributions
  • Automatic enrollment and escalation features
  • Non-discrimination testing requirements

Best For:

Businesses of all sizes that want to offer a comprehensive retirement benefit with flexibility in plan design and contribution options.

Safe Harbor 401(k) Plans

A Safe Harbor 401(k) is a type of 401(k) plan that automatically passes certain non-discrimination tests by meeting specific contribution and vesting requirements.

Key Features:

  • Exempt from most non-discrimination testing
  • Mandatory employer contributions that are immediately 100% vested
  • Same contribution limits as traditional 401(k) plans
  • Roth options available

Best For:

Businesses where owners or highly compensated employees want to maximize their contributions without being limited by non-discrimination testing, and that are willing to make mandatory employer contributions.

SEP IRA

A Simplified Employee Pension (SEP) IRA is a retirement plan that allows employers to make contributions to their employees' IRAs. It's known for its simplicity and ease of administration.

Key Features:

  • Easy to set up and administer
  • No annual filing requirements
  • Employer contributions only (employees cannot contribute)
  • Contributions must be the same percentage of compensation for all eligible employees
  • Best For:

    Self-employed individuals, small business owners with few employees, and businesses looking for a simple plan with minimal administrative requirements and flexibility in making contributions.

SIMPLE IRA

A Savings Incentive Match Plan for Employees (SIMPLE) IRA is designed for small businesses with 100 or fewer employees. It offers a simplified way to provide a retirement benefit with lower administrative costs than a 401(k).

Key Features:

  • Easier to administer than a 401(k) plan
  • No annual filing requirements
  • Employee contributions through salary deferrals
  • Mandatory employer contributions (either matching or non-elective)
  • Lower contribution limits than 401(k) plans
  • Immediate 100% vesting for all contributions

Best For:

Small businesses with 100 or fewer employees that want to offer a retirement plan with employee contributions but with simpler administration than a 401(k).

Solo 401(k)

A Solo 401(k), also known as an Individual 401(k) or Self-Employed 401(k), is designed specifically for business owners with no employees other than themselves and their spouses.

Key Features:

  • Higher contribution potential than SEP IRAs for many business owners
  • Allows for both employee and employer contributions
  • Roth options available
  • Loan provisions available
  • No non-discrimination testing required

Best For:

Self-employed individuals or business owners with no employees (other than a spouse) who want to maximize their retirement savings.

Defined Benefit Plans

A Defined Benefit Plan, often referred to as a traditional pension plan, provides a specified benefit amount at retirement based on a formula that typically considers years of service and compensation.

Key Features:

  • Highest potential contribution limits of all retirement plans
  • Contributions are based on actuarial calculations
  • Employer bears the investment risk
  • More complex administration and higher setup and maintenance costs
  • Annual actuarial certification required
  • Mandatory annual contributions

Best For:

Established businesses with stable cash flow, particularly those with older owners who want to maximize tax-deductible contributions in the years leading up to retirement.

Cash Balance Plans

A Cash Balance Plan is a type of defined benefit plan that combines features of both defined benefit and defined contribution plans. Each participant has an individual account that grows with contribution credits and interest credits.

Key Features:

  • High contribution limits similar to traditional defined benefit plans
  • Can be designed to provide different contribution levels for different employees
  • More predictable costs for employers than traditional defined benefit plans
  • Account balances are portable and can be rolled over to an IRA or another employer's plan
  • Can be combined with a 401(k) plan for maximum contributions
  • More complex administration and higher setup and maintenance costs
  • Annual actuarial certification required

Best For:

Professional service firms and businesses with consistent cash flow where owners or key employees are looking to maximize tax-deductible retirement contributions.

Executive Benefits

Specialized retirement solutions for key employees.

In addition to qualified retirement plans for all employees, many businesses offer supplemental retirement benefits to attract, retain, and reward key executives and highly compensated employees. These non-qualified plans can provide additional retirement income beyond what is possible through qualified plans alone.

At Vincent D. Jacobs Wealth Management, we can help you design and implement executive benefit programs that align with your business objectives and provide meaningful benefits to your key employees.

Executive Benefit Options

Nonqualified Deferred Compensation Plans

Nonqualified Deferred Compensation (NQDC) plans allow executives to defer a portion of their compensation until a future date, typically retirement. These plans are not subject to the contribution limits and non-discrimination testing of qualified plans.

Key Features:

  • No IRS contribution limits
  • Flexible design options
  • Tax-deferred growth potential
  • Can be offered selectively to key employees
  • Subject to claims of the employer's creditors
  • Must comply with IRC Section 409A regulations

Supplemental Executive Retirement Plans (SERPs)

A Supplemental Executive Retirement Plan (SERP) is a non-qualified retirement plan that provides additional retirement benefits to key executives. Unlike deferred compensation plans, SERPs are typically funded entirely by the employer.

Key Features:

  • Employer-funded benefit
  • Can be designed to replace a specific percentage of pre-retirement income
  • Often includes vesting schedules and performance criteria
  • Can include survivor benefits
  • Subject to claims of the employer's creditors
  • Must comply with IRC Section 409A regulations

Executive Bonus Plans

Executive Bonus Plans, often implemented using life insurance, provide a simple way for employers to offer additional benefits to key employees. The employer pays a bonus to the executive, which is then used to purchase a life insurance policy owned by the executive.

Key Features:

  • Simple to implement and administer
  • Tax-deductible for the employer
  • Executive owns the policy and has access to cash value
  • Provides death benefit protection for the executive's family
  • No IRS approval required
  • Can include "golden handcuffs" through a restricted endorsement

Split-Dollar Life Insurance

Split-Dollar Life Insurance is an arrangement where the employer and executive share the costs and benefits of a life insurance policy. These arrangements can be structured in various ways to meet specific objectives.

Key Features:

  • Flexible design options
  • Can provide significant life insurance protection for the executive
  • Employer can recover its costs
  • Can include "golden handcuffs" provisions
  • Complex tax rules and accounting requirements
  • Must comply with split-dollar regulations
Executive Benefits

Enhance Your Business's Retirement Benefits

Let us help you design and implement retirement plan solutions that meet the needs of your business and employees. Contact us today to schedule a consultation.

Contact Us