Company Retirement Plans
Retirement plans offer tax benefits to employers and employees alike. Your company’s success relies on the people who make it work, and a top-notch employee benefits plan is vital to attracting and retaining the best people. These plans can also offer employees a tangible incentive to increase the profitability of your company.
The knowledge and experience that First Financial Trust & Asset Management’s retirement planning specialists have will serve to help you understand Profit Sharing Plans, Money Purchase Pension Plans, Defined Benefit Pension Plans, 401(k) Plans, Simplified Employee Pensions, and IRAs that benefit you and your employees.
As a single- source provider, we assume full fiduciary oversight of your plan. Without the administrative burden or legal exposure of serving as plan trustee, you can focus on what you do best – ensuring the success of your business.
- Plan Design & Administration
- Fiduciary Oversight
- Retirement Plan Design & Administration
When it comes to retirement plans, one size does not fit all. Whether you are a sole proprietorship or a large corporation, today’s retirement plan options provide more flexibility than ever before. Today’s retirement options can also come with large and complex legal requirements that can be ambiguous and confusing. We will help you understand the options and make the decisions that are right for your business.
FFTAM’s team designs and provides complete administrative support for a broad range of Qualified and non-Qualified retirement plans including:
Profit Sharing Plans
• Contributions not required to be made every year (at discretion of employer).
• Contributions may be made out of current revenue, regardless of whether the employer actually has profits.
• Contributions allocated to participants are generally based upon compensation.
• Current tax deduction for contributions made to the plan.
• Provides identifiable incentive to employees to increase profitability.
• Employees elect to defer a percentage of their salary into the plan.
• Salary deferrals are pre-tax, or after-tax (ROTH), as elected by employee.
• Employer contribution is discretionary, not required (profit sharing).
• Employer can elect to make matching contributions.
Simplified Employee Pension Plans (SEP)
• Contributions are made to employee’s IRA.
• Employer is entitled to a tax deduction for the amount of the contribution.
• Self-directed or managed by an investment officer within participant’s guidelines.
• Low administrative costs.
• Flexibility to adjust contribution levels on an annual basis.
• Taxes deferred on income produced by the lump sum.
• Taxes deferred until distributions begin.
• Governed by complex tax law, consultation of a tax advisor is encouraged.
• Flexibility of distribution.
• Can be self-directed or managed by investment officer within individual’s guidelines.
• Tax deferral provides opportunity for tax-free accumulation of wealth.
• Professional management of investments.
- Fiduciary Oversight
Anyone who makes material decisions about a retirement plan, or has the authority to do so, is considered a fiduciary. Every plan must have at least one named fiduciary, but there may be other fiduciaries by virtue of their role in the decision-making process. This may include decisions about administration and investments as well as appointing other service providers and fiduciaries.
A plan sponsor, trustee, or other fiduciary is ultimately individually responsible for operating the plan according to the plan document and IRS/Dept. of Labor regulations. Because many of those held to fiduciary standards are not experts in plan administration or investment management.
As a discretionary corporate trustee, First Financial Trust & Asset Management offers to assume the role of “named fiduciary” for retirement plans that we administer. This extends the highest level of protection to our employee benefits clients and their plan sponsors, on a corporate as well as an individual basis.