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Retirement Plans

Retirement PlansRetirement Plans

Compass Consulting offers several retirement plans for employees as well as business owners.

Here’s a brief overview of the features and advantages of some of the most popular programs:

  • 401(k) Plans
  • Profit Sharing Plans


401(k) Plans
401(k) plans can be a powerful tool in promoting financial security in retirement.  Corporations, Subchapter S corporations, partnerships, sole proprietorships, and self-employed individuals are all eligible to establish these retirement savings plans. They are a valuable option for businesses considering a retirement plan, and provide benefits for employees and their employers.

Employers start a 401(k) for a host of reasons.

  • A well-designed 401(k) plan can help attract and retain talented employees.
  • It allows participants to decide how much to contribute to their accounts on a before-tax basis.
  • Employers are entitled to a tax deduction for their contributions to employees’ accounts.
  • A 401(k) plan benefits a mix of rank-and-file employees and owner/managers.
  • The money contributed may grow through investments in stocks, mutual funds, money market funds, savings accounts and other investment vehicles.
  • Contributions and earnings generally are not taxed by the Federal government or by most State governments until they are distributed.
  • A 401(k) plan may allow participants to take their benefits with them when they leave the company, easing administrative burdens.

Your Compass consultant can handle all the complexities of designing a 401(k) plan for your business, including selecting the plan administrator, platform, and investment choices.

Profit-sharing Plans
These plans reward employees by giving them a percentage of what the business has earned that year.  Employers fund the plan by contributing a portion of the company’s pre-tax profits, which are distributed annually to eligible employees.
By giving workers a stake in the company’s profitability, these flexible plans can inspire improvements in productivity and growth.

Many advantages include:

  • Tax deductibility of employer contributions
  • Tax deferral of contributions and earnings until assets are withdrawn
  • High contribution limits
  • Freedom to choose the contribution amount each year
  • Flexible incentives (individual employee percentages can be weighted)
  • Compatibility with a 401(k) plan (companies can offer both plans if desired)

Retirement Audits
Are you sure you are doing the best possible job as a plan fiduciary? By shopping the market and choosing 401(k) providers with a diverse investment selection, companies often believe they have met fiduciary requirements. Today, however, more and more scrutiny is placed on the fees charged to plan participants:

  • Are the fees reasonable?
  • Are they transparent?
  • What effect do they have on overall return?

Many companies offer 401(k) plans that are bundled within insurance group annuities.  As a result, it becomes difficult to determine how much is actually being paid in fees and how reasonable they are. Compass will provide you with the knowledge you need to safeguard your employees’ assets and help them realize their goal of a financially secure retirement.

Our retirement plan audits help clients understand their plan and its underlying fees.  Our experts will guide you through the maze of investment choices, complicated fee structures, and fiduciary requirements. We’ll work with you to ensure that your firm correctly fulfills all its fiduciary obligations, recommend strategies to improve returns, and control fees within a structure that’s clear and easy to understand.

Let our experienced consultants help you design a plan that’s right for your business. To learn more, please contact us today.