RPA Editorial Team
Why is plan design important
The plan you provide your employees is a catalyst for retirement savings. For many people, it’s the most powerful savings vehicle they will ever access. So, PLAN DESIGN MATTERS!
A well-designed retirement plan could be the driving factor affecting your employees’ participation and their ability to reach retirement with confidence, as well as to remain compliant with regulatory guidelines.
ONE SIZE DOESN’T FIT ALL Your company, your employees and your goals are unique, so why would you settle for an off-the-shelf plan document? Your plan should be custom tailored to fit your needs. Be sure it can:
» Maximize employer contributions
» Maximize tax savings
» Avoid corrective distributions
» Reward key employees
» Attract and retain top talent
» Stimulate retirement savings
» Minimize plan costs
BEST SUITED PLAN TYPE The terms “401(k)” and “retirement plan” are often used interchangeably; however, there are many types of retirement plans: 401(k), 403(b), 401(a), Profit Sharing, 457(b), Defined Benefit, Cash Balance Plans and many others. When you work with a quality TPA, they will discover your primary objectives, assess your unique company attributes and determine the best plan type for you and your employees. Any firm worth working with will have expertise in all plan types.
DESIGNING YOUR PLAN Designing your retirement plan starts by getting to know you. A quality TPA will conduct a complete analysis of your existing retirement plan, take the time to understand what matters most and help you and your company prepare for the future. Custom plan design based on your:
» Unique goals and objectives
» Specific employee demographics
» Financial resources
» Savings philosophy
» Projected company growth/acquisitions
ALWAYS EVOLVING There are a few things in this world that require no maintenance whatsoever: vinyl sheds, cacti, or Toyotas, however, your retirement plan is not one of them. A quality TPA will keep up with your evolving business environment and makes recommendations to improve plan design on an ongoing basis.