Which Retirement Plan Is Best For You
In many cases you simply wont have a choice of retirement plans. Youll have to take what your employer offers, whether thats a 401, a 403, a defined-benefit plan or something else. But you can supplement that with an IRA, which is available to anyone regardless of their employer.
Heres a comparison of the pros and cons of a few retirement plans.
Retirement Plan Advisors Background
Retirement Plan Advisors has been in business since 2000. Today, the firm is a wholly owned subsidiary of Retirement Plan Advisors Group, LLC, a holding company. The founders of the firm are Joshua Schwartz, Christopher McGrath and James OConnor. While O’Connor and McGrath are now retired, Schwartz still works at the firm as its president. The firm has six dedicated offices around the country in Illinois, Wisconsin, Louisiana, Michigan and Missouri.
Some of the staff members at RPA hold represent a wide range of professional designations: certified financial planner , chartered financial analyst , certified public accountant , chartered life underwriter , chartered financial consultant , enrolled agent , certified retirement counselor and accredited investment fiduciary .
Opening An Account With Retirement Plan Advisors
To open an account with RPA, visit the firm’s website. There you can search the firm’s network of advisors and find one that operates in your area. When you locate a suitable option, you can submit a contact form, send an email or even chat directly with the advisor. Call 701-1100 if you prefer working over the phone.
All information is accurate as of the writing of this article.
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Contribution Limits And Matching Requirements For Simple Ira
Employers are required to match or contribute to employee accounts. Employee contributions are optional.
Employees may contribute up to $13,000 in 2019. Those age 50 and over may also make catch-up contributions of $3,000.
Employers must either match up to 3% for participating employees or make a 2% contribution to all employee accounts. Those who choose to match can reduce their contributions to 1% in any two out of five years.
Employee Retirement Plan Pricing
When youre evaluating how much an employee retirement plan costs, you need to consider two sets of prices: your costs to sponsor the plan and your employees costs to participate in it. These costs vary by type of plan and provider. There are also tax incentives associated with some of these plans, which can lower your overall expenditures.
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What We Like About American 401k
- American 401k lays it all out for you online. You know precisely how much the plan will cost you and your employees from the start.
- American 401k keeps investment fees low and offers a wide range of investment choices from quality fund companies, including Fidelity, Charles Schwab, T. Rowe Price, and JPMorgan.
- This plan sponsor provides concierge-level customer support, giving you access to a dedicated team of retirement specialists.
Advisory Services And Fund Research Tools
This plan sponsor provides mobile and online access for enrollment, account management, and investment research and tools. These tools include Morningstar Principia Pro Snapshot reports, asset allocation models, savings calculators and risk comfort profiling. You can also offer your employees a self-directed brokerage option, allowing them to select the brokerage and create their own portfolio online. This is an excellent value-add that not all retirement plan providers offer.
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Advantages Of Employee Retirement Plans
Anyone can set up a retirement plan for their small business, but there are significant advantages to using an independent provider. Here are just a few:
- Helps to attract and retain talent. The job market is competitive. If you want to hire the best employees, you need to offer top-of-the-line benefits.
- Improves productivity. Your HR manager will be a lot more productive if everyones retirement benefits are handled centrally by a professional provider.
- Saves time for recordkeeping. Retirement plan providers have software that makes plan administration and recordkeeping totally seamless and largely automated.
- Reduces the pressure of compliance requirements. The professionals who work with retirement service companies are up to date on the regulations and familiar with current best practices.
Start Planning For The Future Today
Chip Stapleton is a Series 7 and Series 66 license holder, passed the CFA Level 1 exam, and is a CFA Level 2 candidate. He, and holds a life, accident, and health insurance license in Indiana. He has eights years’ experience in finance, from financial planning and wealth management to corporate finance and FP& A.
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One of the most popular retirement accounts for people to use when trying to build a nest egg is a 401. Because theyre only available through employers, a good 401 plan is an important part of attracting and retaining employees.
If you own a small business, make sure you offer an attractive 401 plan for your staff. Also be aware that as an added bonus, your employer contributions to such plans are deductible on your companys federal income tax return, subject to some IRS limitations.
However, knowing which 401 provider to work with can be difficult. Here are some of the best companies to consider when choosing a financial services firm to manage your businesss retirement plan.
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Are You An Executive Hr Leader Or Brand Manager At Retirement Plan Advisors
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- Retirement Plan Advisors
Zippia gives an in-depth look into the details of Retirement Plan Advisors, including salaries, political affiliations, employee data, and more, in order to inform job seekers about Retirement Plan Advisors. The employee data is based on information from people who have self-reported their past or current employments at Retirement Plan Advisors. The data on this page is also based on data sources collected from public and open data sources on the Internet and other locations, as well as proprietary data we licensed from other companies. Sources of data may include, but are not limited to, the BLS, company filings, estimates based on those filings, H1B filings, and other public and private datasets. While we have made attempts to ensure that the information displayed are correct, Zippia is not responsible for any errors or omissions or for the results obtained from the use of this information. None of the information on this page has been provided or approved by Retirement Plan Advisors. The data presented on this page does not represent the view of Retirement Plan Advisors and its employees or that of Zippia.
Retirement Plan Advisors may also be known as or be related to Retirement Plan Advisors and Retirement Plan Advisors LLC.
Key Plan Benefits To Consider
Virtually all retirement plans offer a tax advantage, whether its available upfront during the savings phase or when youre taking withdrawals. For example, traditional 401 contributions are made with pre-tax dollars, reducing your taxable income. Roth 401 plans, in contrast, are funded with after-tax dollars but withdrawals are tax-free.
Some retirement savings plans also include matching contributions from your employer, such as 401 or 403 plans, while others dont. When trying to decide whether to invest in a 401 at work or an individual retirement account , go with the 401 if you get a company match or do both if you can afford it.
If you were automatically enrolled in your companys 401 plan, check to make sure youre taking full advantage of the company match if one is available.
And consider increasing your annual contribution, since many plans start you off at a paltry deferral level that is not enough to ensure retirement security. Roughly half of 401 plans that offer automatic enrollment, according to Vanguard, use a default savings deferral rate of just 3 percent. Yet T. Rowe Price says you should aim to save at least 15 percent of your income each year.
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What Services Can The Retirement Planning Group Provide
As a financial advisory firm, The Retirement Planning Group can provide a variety of financial planning services for Americans. Financial advisors help you achieve your life goals, e.g., saving for retirement, by creating a comprehensive financial plan and managing your investment portfolio .Financial planning services can include tax planning, estate planning, retirement planning, or life-based event planning such as saving for college, getting married, purchasing a home, paying down debt, or planning an inheritance.
The Retirement Plan Company Reviews Faqs
The Retirement Plan Company has an overall rating of 3.4 out of 5, based on over 36 reviews left anonymously by employees. 59% of employees would recommend working at The Retirement Plan Company to a friend and 52% have a positive outlook for the business. This rating has improved by 38% over the last 12 months.
According to anonymously submitted Glassdoor reviews, The Retirement Plan Company employees rate their compensation and benefits as 3.3 out of 5. Find out more about salaries and benefits at The Retirement Plan Company. This rating has improved by 40% over the last 12 months.
59% of The Retirement Plan Company employees would recommend working there to a friend based on Glassdoor reviews. Employees also rated The Retirement Plan Company 3.4 out of 5 for work life balance, 3.3 for culture and values and 3.5 for career opportunities.
According to reviews on Glassdoor, employees commonly mention the pros of working at The Retirement Plan Company to be work life balance, coworkers, benefits and the cons to be culture, management, compensation.
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What About Defined Benefit Plans
Defined benefit planscommonly known as pension plansused to be fairly commonplace but are increasingly rare. According to a study by Willis Towers Watson, only 14% of Fortune 500 companies offered defined-benefit plans to new hires in 2019, a decrease from 59% of Fortune 500 companies in 1998.
With a defined benefit plan, employees receive a fixed, pre-set benefit when they retire. They have a predictable and reliable source of income in their retirement, and their benefits arent dependent on investment returns or market growth.
Defined benefit plans tend to be more expensive and complex for employers to operate, so many companies are opting to offer alternative retirement plans instead, such as 401s.
Why You Can Trust Bankrate
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. Weve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next.
Bankrate follows a strict editorial policy, so you can trust that were putting your interests first. All of our content is authored by highly qualified professionals and edited by subject matter experts, who ensure everything we publish is objective, accurate and trustworthy.
Our reporters and editors focus on the points consumers care about most how to save for retirement, understanding the types of accounts, how to choose investments and more so you can feel confident when planning for your future.
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Annual Retirement Plan Limits
The IRS has announced changes to retirement plan limits for 2022
Each year the Internal Revenue Service announces the cost-of-living adjustments applicable for all types of qualified retirement plans and IRAs. The various annual contribution limitations and other important indexes which govern all plans either remain unchanged year-over-year or may rise depending on whether the Consumer Price Index meets a threshold level dictating an increase.
For 2022, highlights include:
- The contribution limit for employees who participate in 401, 403, most 457 plans, and the federal governments Thrift Savings Plan is increased to $20,500
- Limits on contributions to traditional and Roth IRAs remains unchanged at $6,000
- The Total Annual Contribution Limit for defined contribution plans increases from $57,000 to $61,000.
- The Annual Compensation Limit increases from $285,000 to $305,000.
The Retirement Plan Company is pleased to present this table for your convenience. Contact Us for more assistance.
Annual Compensation and Contribution Limits for Qualified Retirement Plans
How Much Can My Business Contribute To My Employees 401 Plans
The IRS issues guidance on how much employers and employees can contribute to 401 plans each year. For the tax year 2022, employers can contribute at most 100% of the employees total annual wages or $61,000, whichever is smaller. This limit increases to $67,500 for employees ages 50 and older. However, this $61,000 figure represents the maximum allowed total for employee and employer contributions. Employees can contribute at most $20,500. These figures could change again in 2023, though sometimes, the IRS maintains its limits in subsequent years.
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Let Us Give A Complimentary Review Of Your Plan To See Where You Stand
Offering a retirement plan can be one of the most rewarding yet challenging decisions an employer can make. Administering the plan and acting as the fiduciary to the plan, however, requires certain actions and involves specific responsibilities. The biggest area to come under intense focus recently is cost. Most lawsuits relate to this specific item. If you want a complimentary review of your retirement plans costs, contact DHJJ. Our DHJJ Financial Advisors team will conduct a full review of fund offerings and costs associated with your plan and help you understand how this compares to other plans available in the marketplace.
If you would like a complimentary review, please contact us at 630-420-1360 or fill out the form below.
Pros Of Traditional 401
- Employers are not required to match participant contributions.
- Employer contributions are tax deductible as a business expense.
- Employers may set a vesting schedule to encourage employee retention.
- The contribution limits for employees are higher.
- Employees can elect to make salary deferrals or after-tax contributions.
- Contributing participants may qualify for the savers credit on their income tax returns.
- Loans are available to plan participants.
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Advantages Of A Qualified Plan
Why should an employer have a pension plan?
- One of the few remaining tax shelters
- Income tax deduction for contributions
- Tax-deferred return on invested assets
- Postponement of and increase options for taxation of benefits
- Motivational tool to attract and retain key employees
- Life insurance can be purchased on a pre-tax basis
- To be able to retire with dignity and not have to depend upon your children or the government
- Receive a tax credit for a new pension plan, to find out how
- Experienced staff
- Dedicated service
- Our sole expertise is in designing, establishing, and administering qualified pension plans we do not do payroll, we do not do investments, we do not recordkeep investments
- We do not receive commissions from the plans investments
- We are consultants, not clerks. We stand out because:
- We question data we receive that doesnt seem right or is sketchy
- We reconcile employer and employee allocations to the penny
- We include a letter with every valuation report we do which details any action the plan sponsor needs to take
What To Watch Out For
Retirement Plan Advisors is a fee-based firm, and it employs some financial advisors who can receive commissions when they sell certain securities or insurance products. As a result of this situation, there exists a potential conflict of interest. However, this doesn’t affect the firm’s status as a fiduciary, legally binding it to act in the best interests of clients at all times.
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The Experience Of An Industry Leader
Since 1859, Equitable has helped people build and secure their financial futures. We stand among the nations premier providers of life insurance and annuity products, providing stability and reliability to our clients.
1 Retirement Certainty specifically refers to the Equitable Fixed Account available through a group fixed annuity issued by and backed by the claims-paying ability of Equitable Financial Life Insurance Company .
Equitable believes that education is a key step toward addressing your financial goals, and we’ve designed this discussion to serve simply as an informational and educational resource. Accordingly, this content does not offer or constitute investment advice and makes no direct or indirect recommendation of any particular product or of the appropriateness of any particular investment-related option. As an employee or as an employer, your needs, goals, and circumstances are unique, and they require the individualized attention of your financial professional. But for now, take some time just to learn more.
An annuity contract used to fund a qualified employer-sponsored retirement arrangement should be considered for its features and benefits other than tax deferral. For such cases, tax deferral is not an additional benefit of the annuity. The relative features, benefits and costs of an annuity should be considered alongside with any other investment that one may have in connection with his or her retirement plan or arrangement.
What Is The Historical Performance Of The Retirement Planning Group
Neither the SEC nor FINRA tracks portfolio performance metrics for the financial planning industry. As a result, unlike hedge funds, there is no historical performance for any financial advisory firm. Financial plans and investment portfolios are always unique to the client’s personal financial situation.
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