Corporate retirement plans are often structured in one of two ways — as Defined Contribution plans or as Defined Benefit plans. When choosing a plan, here are six design features to consider:

1. Eligibility: Which employees can access the plan and when can they start accruing a benefit.
2. Entry Points: When do eligible employees enter the plan.
3. Compensation: What portion of an employee’s wages count toward calculations of a benefit when they’re ready to begin receiving it.
4. Retirement Age: What age defines target retirement for employees for calculation purposes and Qualified Default investment alternatives.
5. Company Contribution Formulas: Will the plan use elective or non-elective contribution? A Defined Benefit plan always has non-elective contributions, so elective can only be considered for a Defined Contribution plan.
6. Vesting schedules: How long does an employee need to be in service at the company to earn the right to retain the benefit if they terminate service or leave the company.
 
Maximums for both plans received through elective and non-elective contributions are adjusted every year by the IRS. You can find more information about maximum contributions at the link below.

 
A unique strategic plan design tailored to a specific industry and region can and should create enhanced benefit options for owners and key employees. It can also help attract and retain employees for corporate growth and success. But, it’s important to pick the right plan for the right reasons and understand how the financial commitments being made to the employees can impact the business long term.

Listen to learn about the difference between the two, and what should be considered when choosing one or the other.

If you have questions or want to discuss setting up a strategic plan for your business, get in touch today by filling in our contact form: …(read more)

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Josh Weszka is a renowned expert in the field of corporate retirement plan design. With decades of experience in the financial sector, Weszka has helped numerous companies navigate the complexities of retirement planning and create customized solutions that meet their specific needs.

When it comes to designing a corporate retirement plan, there are a myriad of factors to consider. From the size and demographics of the workforce to the company’s overall financial goals, every detail must be carefully thought out in order to create a plan that is both effective and sustainable. This is where Weszka’s expertise comes into play.

One of the key aspects of corporate retirement plan design that Weszka emphasizes is the importance of establishing clear objectives from the outset. By identifying the goals and priorities of the company, Weszka is able to tailor a retirement plan that aligns with these objectives and maximizes the benefits for both employers and employees.

Another crucial element of retirement plan design is ensuring that the plan is compliant with all relevant regulations and guidelines. Weszka’s in-depth knowledge of these regulations allows him to create plans that not only meet legal requirements but also protect the interests of the company and its employees.

In addition to regulatory compliance, Weszka also focuses on creating retirement plans that are cost-effective and efficient. By carefully analyzing the company’s financial situation and employee demographics, Weszka is able to design plans that minimize costs while maximizing benefits for participants.

Overall, Josh Weszka’s approach to corporate retirement plan design is comprehensive and strategic. By taking into account the unique needs and goals of each company, Weszka is able to create retirement plans that are tailored to the specific circumstances of the organization while also ensuring compliance with regulations and maximizing benefits for employees.

If you are a company looking to design or update your retirement plan, consider consulting with Josh Weszka. With his expertise and guidance, you can create a plan that not only meets your needs today but also prepares your organization for a secure and prosperous future.