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Retirement Plans for Financial Institutions

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Retirement Planning for Bank Employees

Your employees are the backbone of your bank, ensuring daily operations run smoothly and fostering financial stability. Providing them with a tailored retirement plan not only secures their future, but strengthens their overall financial well-being.

No matter the size of your financial institution, we offer customized retirement solutions designed to fit both your bank and employees’ needs. A well-structured retirement plan is one of the most effective tools for attracting and retaining top talent, ensuring your workforce remains engaged and committed.

We help design a comprehensive retirement plan that benefits both your business and employees through:

  • Participant Education – Empowering employees with financial knowledge for better retirement planning
  • Employer Advisory Support – Guiding you through plan structuring and administration
  • Ongoing Assistance – Providing continuous support to plan sponsors and plan participants for long-term success
banker shaking customer hand at desk

Bank Employees Set for Retirement

Let us help you build a retirement strategy that strengthens your organization while ensuring financial security for those who make it thrive.

Why Retirement Planning Matters for Financial institutions

  • Attract and Retain Top Talent
  • Improves Financial Wellness
  • Provides Tax Advantages
  • Strengthens Succession Planning

Retirement Plan Types

View the Retirement Plan Reference Guide

SIMPLE - IRA

SIMPLE-IRA

Target or Typical Plan Sponsor

  • All businesses with fewer than 100 employees.

Advantages

  • Pre-tax retirement savings with easy administration.
  • No tax filings required.

Funded By

  • Employee and employer.

Eligibility Requirements

  • Employees earning $5,000 in two prior years.

Maximum Annual Individual Contribution

  • 100% of compensation up to $16,500 (indexed).
  • Additional $3,500 catch-up if age 50+ (indexed).

Maximum Annual Employer Contribution

Choice of two required contributions:

  1. Match 100% up to 3% of compensation.
  2. OR 2% contribution to all eligible employees.

Match can be reduced in 2 out of 5 years.

No additional employer contributions are allowed.

Vesting Schedule and Conditions

  • 100% immediate vesting.

Discrimination Testing & Govt. Reporting

  • ADP: No
  • Top Heavy: No
  • Govt. Reporting: No

Loans Available

  • No

When to Establish

  • No later than October 1st.

SEP - IRA

SEP-IRA

Target or Typical Plan Sponsor

  • All businesses.

Advantages

  • No filing requirement.

Funded By

  • Employer.

Eligibility Requirements

  • May impose age 21 with any service in three out of five years.

Maximum Annual Individual Contribution

  • Not applicable.

Maximum Annual Employer Contribution

  • 25% of eligible compensation, not to exceed $70,000 (indexed).

Vesting Schedule and Conditions

  • 100% immediate vesting.

Discrimination Testing & Govt. Reporting

  • ADP/ACP: No
  • Top Heavy: Yes
  • Govt. Reporting: No

Loans Available

  • No

When to Establish

  • Prior to tax filing deadline plus extension.

Solo Roth 401(k)

Solo 401(k)

Target or Typical Plan Sponsor

  • All businesses with no common law employees.

Advantages

  • Ability to contribute maximum individual deferral plus 25% of eligible income.
  • No tax filings until assets exceed $250K.

Funded By

  • Employee and employer.

Eligibility Requirements

  • Varies depending on situation.

Maximum Annual Individual Contribution

  • 100% of income up to $23,500 (indexed).
  • Additional $7,500 catch-up if age 50+ (indexed).

Maximum Annual Employer Contribution

  • 25% of eligible employee compensation.
  • Individual eligible employee compensation is limited to $350,000 (indexed).
  • Total individual contributions may not exceed $70,000 / $77,500 if catch-up eligible (indexed).

Vesting Schedule and Conditions

  • 100% immediate vesting.

Discrimination Testing & Govt. Reporting

  • ADP/ACP: No
  • Top Heavy: No
  • Govt. Reporting if >$250K.

Loans Available

  • Yes

When to Establish

  • Prior to tax filing deadline plus extension.

401(k) Plan

401(k) Plan

Target or Typical Plan Sponsor

  • All businesses (except governmental agencies).

Advantages

  • Effective tax tool and employee benefit with employer control.
  • Roth contributions allowed.

Funded By

  • Employee and employer.

Eligibility Requirements

  • May impose age 21 and 1 year of service with 1,000 hours.

Maximum Annual Individual Contribution

  • 100% of compensation up to $23,500 (indexed).
  • Additional $7,500 catch-up if age 50+ (indexed).

Maximum Annual Employer Contribution

  • 25% of eligible employee compensation (indexed).
  • Individual compensation limit: $350,000 (indexed).
  • Total contributions may not exceed $70,000 / $77,500 if catch-up eligible (indexed).

Vesting Schedule and Conditions

  • Vesting schedule available.
  • Employer contributions may require 1,000 hours of service and/or employment on the last day of the plan year.

Discrimination Testing & Govt. Reporting

  • ADP/ACP: Yes
  • Top Heavy: Yes
  • Govt. Reporting: Yes

Loans Available

  • Yes

When to Establish

  • Prior to tax filing deadline plus extension.

Safe Harbor 401(k) Plan

Safe Harbor 401(k) Plan

Target or Typical Plan Sponsor

  • All businesses (except governmental agencies).

Advantages

  • Great for small, family-owned businesses avoiding ADP/ACP and Top-Heavy tests.
  • Roth contributions allowed.

Funded By

  • Employee and employer.

Eligibility Requirements

  • May impose age 21 and 1 year of service with 1,000 hours.

Maximum Annual Individual Contribution

  • 100% of compensation up to $23,500 (indexed).
  • Additional $7,500 catch-up if age 50+ (indexed).

Maximum Annual Employer Contribution

Choice of one Safe Harbor Match formula or SH NonElective:

  1. (a). Basic Match 100% up to 3% of compensation plus 50% of next 2% of compensation.
    (b). Enhanced Match 100% up to 4% of compensation. (The enhanced match is easier to explain and setup on payroll).
  2. OR Contribution of 3% of compensation to all eligible employees.

Vesting Schedule and Conditions

  • 100% immediate vesting on Safe Harbor contributions.
  • Additional discretionary employer contributions may have vesting schedules.

Discrimination Testing & Govt. Reporting

  • ADP/ACP: No
  • Top Heavy: No
  • Govt. Reporting: Yes

Loans Available

  • Yes

When to Establish

  • No later than 3 months prior to plan year end.

Profit Sharing Plan

Profit Sharing Plan

Target or Typical Plan Sponsor

  • All businesses, typically as an add-on to a 401(k) plan.

Advantages

  • Often added to a 401(k) giving the sponsor the discretion to contribute a total of 25% of eligible plan compensation. 
  • Contribution amounts can vary greatly among owners and eligible employees.

Funded By

  • Employer.

Eligibility Requirements

  • May impose age 21 and 1 year of service with 1,000 hours.
  • 2 years if 100% vesting.

Maximum Annual Individual Contribution

  • Not applicable.

Maximum Annual Employer Contribution

  • Discretionary up to 25% of eligible compensation.
  • Compensation limit: $350,000 (indexed).
  • Total contributions may not exceed $70,000 (indexed).

Vesting Schedule and Conditions

  • Vesting schedule available.
  • Employer contributions may require 1,000 hours of service and/or employment on the last day of the plan year.

Discrimination Testing & Govt. Reporting

  • ADP/ACP: No
  • Top Heavy: Yes
  • Govt. Reporting: Yes

Loans Available

  • Yes

When to Establish

  • Prior to tax filing deadline plus extension.

Cash Balance Plan

Cash Balance Plan

Target or Typical Plan Sponsor

  • Highly profitable businesses with consistent profit patterns.

Advantages

  • Allows owners 40+ to contribute much higher annual amounts.
  • Paired with 401(k) plans to exceed $400,000 per person.

Funded By

  • Employer.

Eligibility Requirements

  • May impose age 21 and 1 year of service with 1,000 hours.

Maximum Annual Individual Contribution

  • Not applicable.

Maximum Annual Employer Contribution

  • Mandatory, based on age and wage.
  • Owner contributions often adjusted every 3–5 years.
  • Wages limited to $350,000 (indexed).
  • Contribution levels may exceed $400,000 per person depending on age/income.

Vesting Schedule and Conditions

  • Vesting schedule available.
  • Employer contributions usually not subject to service requirements to pass discrimination tests when paired with 401(k).

Discrimination Testing & Govt. Reporting

  • ADP/ACP: No
  • Top Heavy: Yes
  • Govt. Reporting: Yes

Loans Available

  • Yes

When to Establish

  • Prior to tax filing deadline plus extension.

Contact Our Retirement Planning Team

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