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Online 401(k)Plan
SIMPLE-IRA Plan
SEP-IRA Plan
Payroll Deduction Program
Checklist
Feature Definitions
Plan Comparisons
Payroll Deduction Program Checklist
Well suited for employers who:
- want to provide a structure for employees to fund their own retirement.
- want
to offer something in addition to a qualified retirement plan; an attractive
addition to any employer-sponsored benefit program.
How Does It Work?
Employees
have money deducted from their pay checks. The amount deducted can be
used to fund a:
- Roth IRA
- Traditional
IRA
- Nonqualified investments
- Education
IRA
- UTMA (Uniform Transfer to Minors Act) account
What Are the Advantages?
Advantages for you:
- There is no cost to the employer.
- It's easy to set-up and operate.
- There are no IRS forms or tests to comply with.
Advantages for employees:
- It allows
employees to build their personal retirement savings.
- There
are several investment and account options to choose from.
- Employees can choose the investment and account options that are right for them.
Is It Right for My Business?
The Payroll Deduction Program may be a good plan design for you if the following statements match your retirement plan objectives and capabilities:
- I want
to be able to set up the program in addition to a qualified retirement
plan.
- I won't
be able to take a tax deduction for what the employees save, but that's
ok.
- I won't
have expenses to pay.
- An ongoing
administrative contact is not necessary. Support through an 800 phone
number is fine.
- I don't
want to bother with much annual compliance testing or IRS reporting.
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Principal Financial Group. All Rights Reserved. |