Navigating the world of group retirement plans can be challenging. BFS offers small business retirement plan services so employers in Cottonwood, Arizona, can implement and manage executive benefit plans and succession planning services with the support of a dedicated service representative. We also provide one-on-one implementation and administration support for a suite of employee retirement plans, including cash balance plans, buy/sell arrangements, SIMPLE and SEP IRAs, 401(k) and 403(b) plans, and pension plans.
Pension, Profit Sharing, 401(k) Plans, 403b Plans: Cottonwood, AZ, employers have many options when it comes to helping their employees save for retirement. Business profit-sharing arrangements allow employers to split a portion of company profits among employees eligible for the plan, while pension plans are employer-funded retirement savings for a business’ vested employees. In addition, clients of BFS small business retirement plan services may offer 401(k) and 403(b) retirement plans to their employees. We offer implementation and administration support for these popular retirement plans, which combine tax-deferred employee contributions with employer-matched funds.
Cash Balance Plans: Cash balance plans are a defined benefit plan that allows Cottonwood, AZ employers to credit a designated account for eligible employees with a percentage of their annual compensation. Depending upon the plan’s provisions, employees may receive this benefit as a lump sum or monthly annuity upon retirement.
Buy/Sell Agreements: Cottonwood, AZ, businesses can implement buy-sell agreements to protect against financial loss after the death or disability of a business owner or employee. The most common types of arrangements are cross-purchase agreements and stock purchase agreements. Depending on the type of agreement in place, after a qualifying event, other employees may have the option to buy the newly available ownership shares (cross-purchase), or the company’s key employees may agree to purchase the shares (stock purchase agreement).
Simple and SEP IRAs: SIMPLE (Savings Incentive Match Plan for Employees) IRA plans provide Cottonwood, AZ employers a straightforward and inexpensive retirement benefit. Under a SIMPLE plan, employers can make non-elective contributions of 2% of an employee’s salary or matching contributions up to 3% of an employee’s salary. Employees can contribute up to $13,500 ($16,500 for workers over 50) in 2021. Unlike SIMPLE IRA plans, SEP (Simplified Employee Pension) IRA plans are funded 100% by employers. In addition, SEP plans have higher annual contribution limits than SIMPLE plans and low administration costs, making them a popular retirement vehicle for small business owners and the self-employed.
Deferred Compensation and Defined Benefit Plans: Deferred compensation plans are often offered to executives or as a supplemental option in addition to 401(k) or other retirement plans. Under a deferred compensation plan, an employee defers accepting a portion of their salary until a specified date in the future. During the deferral period, the individual’s tax liability is reduced. Defined benefit plans are more commonly referred to as pension plans and provide employees with a specific payment amount in retirement, which may be paid as a lump sum or in monthly payments, depending on the plan’s rules.
Succession Planning: If you own a business, succession planning is essential to secure your company’s future. In the event of a tragedy or upon your retirement, a thoughtfully developed and implemented succession plan can ensure you retain the assets you need to retire and provide for your family while successfully transferring the company's ownership.
Executive Benefits: Benefit & Financial Services can help employers in Cottonwood, Arizona, navigate the highly-regulated landscape of executive benefits. Our expert financial planners design executive compensation and benefits packages that ensure compliance with the US Department of Labor regulations that govern qualified and non-qualified executive benefits.
