MVM helps clients establish a comprehensive retirement plan to attract and retain valued employees. MVM offers a range of plan options to help employers address their organizations' retirement needs.
Retirement Plan Strategies
Any business can establish a retirement plan. Having a retirement plan in place benefits both the employers and their employees. The employers receive a current deduction for allowable plan contributions, and the plan participants receive compounded tax-deferred growth.
There are a variety of different plan designs and variations of those plans that can be established by an employer. Careful consideration must be given to employer needs and objectives versus the needs and objectives of the employees. Each plan may provide varying employer and employee contribution flexibility, employee eligibility rules, vesting capabilities and administrations requirements.
Choose the right plan for your business
· Simplified Employee Pension (SEP):This flexible plan lets you, the employer, choose when and how much to contribute each year. The plan works like an IRA but allows substantially higher contributions than a regular IRA. SEPs are easy to start up and manage, and require no annual filings with the IRS or the U.S. Department of Labor.
· SIMPLE IRA: This is another IRA variant, open to companies with fewer than 100 employees. It allows employees to make contributions from pre-tax earnings. Employers must contribute to each eligible employee's SIMPLE IRA, using one of two specified formulas. Employees make their own investment decisions, and can keep their SIMPLE IRA even if they leave your company.
· 401(k) plans: come in many different forms. In all 401(k) plans, employees choose to contribute a portion of their salary to be held in trust. Accurate records must be kept and annual reports filed with the Federal government. The employer is responsible for setting up a system to enroll, educate and communicate with participants.
· Profit-sharing plan: This option provides the employer a great deal of flexibility and discretion in making contributions. An employer can make substantial profit sharing plan contributions to supplement employees' 401(k) plan contributions.
· Defined benefit plans: These provide employees with a fixed benefit under specified employment term conditions. They are funded entirely by the employer.