Employer-Sponsored Retirement
Provide Your Employees With The Assurance That Their Futures Are Protected
The CFI Agency provides employer-sponsored retirement plans to businesses in Fort Myers, Cape Coral, Orlando, Delray Beach, Naples, Estero, and surrounding areas.
As a business owner, it’s important to keep your employees happy so your business can run smoothly. The CFI Agency understands the intricacies involved in running a successful business, which is why we offer employer-sponsored retirement plans that run at little to no cost for your employees. Your employees will be happy with the discounted services they receive, and the plan that your business offers is tax-deductible, ensuring satisfaction on both ends.
With a quality retirement plan in place, your employees can rest assured that their earnings are safeguarded for the future. Your business will experience the benefits of having a happy, productive working environment.
Here are some the employer-sponsored retirement plans we offer at The CFI Agency
- 401(k)
- 457(b)
- 403(b)
- Tax-exempt earnings growth
401(k)s
If you're lucky enough to work for a company that offers a 401(k) plan, take advantage. It's the easiest and best way to save for retirement. You get an immediate tax break, because contributions come out of your paycheck before taxes are withheld, thereby lowering your taxable income. You also get the possibility of a matching contribution from your employer. And you get tax-deferred growth -- meaning you don't pay taxes each year on capital gains, dividends and other distributions.
The federal limit on annual contributions is $18,500 for the 2018 tax year. Those 50 and older may contribute an additional amount, now set at $6,000, above the maximum allowable 401(k) contribution. For all its tax advantages, the 401(k) is not a penalty-free ride. Pull out money from your account before age 59-1/2, and with few exceptions, you'll owe income taxes on the amount withdrawn plus an additional 10% penalty.
Also, be aware of your plan's vesting schedule -- the time you're required to be at the company before you're allowed to walk away with 100% of your employer matches. Of course, any money you contribute to a 401(k) is yours.
Roth 401(k)s
A Roth 401(k) is a relatively new option that some employers offer along with a traditional 401(k). It's basically the opposite of a traditional 401(k) plan -- meaning you pay the taxes on your contributions, but not your withdrawals. So while you do have to fund it with after-tax dollars, the money grows tax free and you won't have to pay income tax on any money you take out.
Roth 401(k)s are subject to required minimum distribution rules. So after you turn 70 ½, you will be required to start withdrawing money from the account.
If your employer offers both types of plans, you can divide your savings among them -- they will have the same investment options -- but your combined annual contributions cannot exceed $18,500 in 2018 ($24,500 for people 50 or older).
403(b)s
A 403(b) plan is a similar to a 401(k) plans but are offered to employees of government and tax-exempt groups, such as schools, hospitals and churches.
457s
A 457 plan also works like a 401(k), but is available to state and local public employees, and employees of certain nonprofit organizations. Contribution limits are the same as for a 401(k), but if your employer offers both, you can contribute the maximum to both plans, essentially doubling the amount you can stash away. They may offer special catch-up contributions that are higher than those allowed under 401(k)s.
Contact a representative at The CFI Agency today to set up a consultation.