Choosing and Administering Your Retirement Plan
Choosing the retirement plan that works best for your company can be complicated. An advisor from Lake City Bank can help you weigh your options. We offer the following options.
401(k) Plans
A retirement plan that accepts employee contributions, and oftentimes matches them, 401(k) plans come in many shapes and sizes. Traditional, tax-deferred 401(k) contributions are made before income taxes are applied, and earnings and contributions are not taxable until they are withdrawn. Roth 401(k) contributions are made with after-tax dollars, but withdrawals, including earnings, are tax-free if certain conditions are met.
401(k) Safe Harbor Plans
A popular version of traditional 401(k) plans, Safe Harbor Plans reduce IRS non-discrimination testing limitations while allowing business owners to maximize contributions to their own 401(k) plans.
403(b) Plans
Designed for employees of nonprofit and educational organizations, traditional, tax-deferred 403(b) contributions are made before income taxes are applied, and earnings and contributions are not taxable until they are withdrawn. Roth 403(b) contributions are made with after-tax dollars, but withdrawals, including earnings, are tax-free if certain conditions are met.
Profit Sharing Plans
Profit sharing plans are defined contribution plans that allow employers to give employees a portion of the company’s pre-tax profits.
Defined Benefit Plans
Defined benefit plans guarantee employees a set monthly payment at retirement. The amount employees receive is based on factors like years with the company, age at retirement and salary.
Experienced advisors at Lake City Bank are ready to help you choose the right plan for you and your company.
Investment products used by the Wealth Advisory Group are not obligations of nor guaranteed by Lake City Bank, are not FDIC insured, are not a deposit, and may involve risk, including possible loss of principal.
