Choosing the Right Plan

Employee Incentive Plans, Inc (EIP) will assist you in developing a plan best suited for your organization. To do so, we will complete a thorough analysis of various factors such as:

  • Workforce demographics
  • Business and individual tax planning
  • Funding considerations
  • Administrative requirements

Tax Savings

For smaller employers, retirement plans become as much of a tax saving strategy as an employee benefit. We help clients to maximize their own savings contributions while using the tax code to take advantage of the various incentives available for the plan sponsor.

Employees also need encouragement to make ongoing contributions toward their retirement accounts. The IRS allows significant tax savings for those who choose to participate in their retirement plan. By sponsoring a retirement plan for your organization, you are able to help make a difference in the overall well-being of your employees and their families.

Employee Engagement

Retirement and employee benefit plans are a great way to attract and retain motivated employees. In today’s marketplace, retirement plans represent a crucial component of employees’ overall benefit package, and it is increasingly important they understand you offer the program. As part of employers’ expectations to their employees, you take on a parental role of helping them to achieve their long-term savings goals and objectives. By offering a retirement plan, you are helping to provide a vehicle for them work closer and closer to achieving those goals.

Employers are Employees Too

Employers must not forget the importance of saving for their own retirement as well. Typically, the predominant asset of business owners is their business. All too commonly, employers put off saving for their own retirement until a point is reached where working to catchup for lost savings years becomes a must rather than a choice. With tax incentives, creditor protection and the simplified process of deferring from your business income, retirement plans offer a huge potential for employers to help contribute towards their own retirement alongside their employees. It’s a win-win.

Tax Advantages

  • Retirement benefits may qualify for favorable income tax treatment.
  • Potential investment earnings grow on a tax-deferred basis.
  • Contributions are not currently reportable as income by the employees.
  • They provide tax deductions for plan contributions and administrative expenses.

Business Advantages

  • Profit sharing plans and 401(k) plans motivate employees to take a more personal interest in the company’s success.
  • They provide your employees, including management, with logical, effective ways to accumulate capital and/or retirement income.
  • Competent employees can be retained with this valued benefit.
  • They enhance your competitive position in the labor marketplace.

Plan Funding

Employee Deferrals

    • Pre-tax & Roth Contributions
    • Deferral of Taxation
    • Creditor Protection

Employer Matching

    • Discretionary Match
    • Safe Harbor Match
    • Basic or Enhanced

Employer Profit Sharing

    • Traditional
    • Integrated/Permitted Disparity
    • New Comparability/Cross-Tested
    • Safe Harbor Non-Elective