Top Employer-Sponsored Retirement Plans for Your Business

As a business owner, one of the most impactful things you can do for your team—and your business—is to offer an employer-sponsored retirement plan. These plans go far beyond providing a place to save money. They are a key component of a comprehensive employee benefits strategy.

3 Key Benefits of Offering Employer-Sponsored Retirement Plans

Employer-sponsored retirement plans are a cornerstone of a strong employee benefits package. Whether you’re a small business owner or leading a growing team, offering a retirement plan can improve employee retention, enhance loyalty, and unlock valuable tax benefits for your business.

1. Talent Attraction & Retention: Offering a competitive retirement plan helps your business stand out and keeps employees engaged.
2. Employee Loyalty: A structured plan shows long-term investment in your team, fostering stronger bonds and commitment.
3. Tax Advantages: Contributions to retirement plans can reduce your taxable income, leading to potential business tax savings.

Types of Employer-Sponsored Retirement Plans

Traditional 401(k)
Allows employees to contribute pre-tax income, with optional employer matching and flexible vesting schedules. Also includes options for loan provisions in some cases.

Safe Harbor 401(k)
These plans offer many of the same benefits as a traditional 401(k), but with higher potential contribution maximums. It’s ideal for businesses looking to maximize employee deferrals and lower tax obligations.

Profit-Sharing Plans
Highly flexible plans that allow employers to make discretionary contributions—perfect for rewarding performance without requiring employee contributions.

Non-Qualified Deferred Compensation (NQDC)
Tailored for high earners, this plan offers matched or unmatched contributions and greater long-term retirement savings potential.

For a detailed overview of retirement plan options for small businesses, visit the U.S. Department of Labor’s guide.

Customize Retirement Plans to Fit Your Business

There is no one-size-fits-all solution. Choosing the right employer-sponsored retirement plan starts with understanding your business’s unique needs. From your team size to your growth goals, several factors play a role in determining which retirement plan will provide the best long-term value for both you and your employees.

Your plan should align with:

• The size and growth phase of your business
• Your talent acquisition and retention goals
• Your financial outlook and risk tolerance

Work With a Trusted Advisor

Choosing the right employer-sponsored retirement plan involves complex decisions. Partnering with a financial professional ensures your plan evolves as your business grows and complies with regulatory requirements.

Ready to start offering a retirement plan or want to review your current strategy? Contact our team at Forward Investment Services to explore your options.