Types Of Retirement Plans
The Standard offers the full range retirement plans. Contact us today to learn which arrangement best fits your needs.
The most popular choice among private employers, 401(k) plans allow eligible employees to contribute a part of their income to a tax-deferred retirement account. Employers may also choose to match a portion of their employees' contributions.
403(b) plans are similar to 401(k) plans, but are available only to public schools, colleges and universities, churches and entities that are tax-exempt under Section 501(c)(3) of the Internal Revenue Code.
The employer chooses, based on profits or other factors, whether or not to make a contribution to the plan each year, and if so, how much. At the end of the year, contributions are divided among eligible employees. Profit sharing plans can include a 401(k) feature.
Money purchase plans are similar to profit sharing plans, except that the amount the employer contributes on behalf of each employee is a set amount specified in the plan.
Nonqualified Deferred Compensation
With a nonqualified plan, the employer agrees to pay select employees a defined amount of compensation at a future date, such as retirement. This arrangement allows highly compensated employees to save for retirement without the limitations of a qualified plan.
457(b) plans are similar to 401(k) plans, but are available only to eligible employees of a state or local government.
This arrangement generally promises participants a monthly benefit at retirement based on their earnings and years of service. Employees do not contribute to this type of plan.