Retirement Planning for Businesses

 

Each of us has unique situations that require a specific retirement plan to meet our needs. Businesses also are in a unique situation that can require a specific type of retirement plan to meet its needs and goals (for both the company and its employees.)


Our goal at Frontier Bank Wealth Management & Trust is to work with those businesses and key employees to assist them in determining which type of retirement plan is best for everyone involved. Our team of retirement planners averages more than 15 years of experience each. We’re dedicated to working with you to develop the best-fitting retirement plan to fit your business.


Did you know that there are a number of options to choose from when you’re looking for the best retirement plan for your business? Here are some things to consider:

  1. Why do you want to set up a retirement plan?
    - General retirement savings
    - Tax breaks
    - Employee attraction/retention
  2. How many employees are in your company?
  3. What type of options would you like to provide in a retirement plan?
  4. Is there a budget for plan expenses, employer matching, etc.?

This is a great list of questions to help you get started when choosing the best “fit” for your company. Some of the different types of employer retirement plans for small businesses include the SEP-IRA, the SIMPLE IRA, and the Individual 401(k). These types of plans are usually simple to set up and are cost-efficient.


As an employer or business, you may also be interested in a more traditional 401(k) retirement plan. The options, regulations, and expenses all increase when selecting this type of plan. This is where profit-sharing, employer matching, eligibility options, and more all come into play. These options can be overwhelming for many small businesses when setting up a retirement plan.


The costs and flexibility vary greatly depending on the structure of the plan and the type of provider offering that plan (insurance company, brokerage firm, or trust company.) Be sure to ask your provider how the plan is structured and if they are operating in a fiduciary capacity (a legal requirement to act in your best interest at all times.)

A non-fiduciary could cause headaches down the road, including the following:

  • Large surrender charges
  • High internal fees
  • Transfer restrictions
  • Failure to follow required regulatory guidelines
  • Inability to provide investment advice to plan participants, etc.

It is always best to get all of this information up-front! A well-seasoned advisor will help you navigate through all of your options and make sure you are establishing the best retirement plan for both you and your business.

Ready to get started? Visit our Financial Planning page to find information on our retirement plan options. 

Gary Popkes

Gary Popkes, CFP®
Senior Vice President
Downtown Sioux Falls
605-332-3832

 

 

 

 

 

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