Individual Retirement Account Services
With EinsteinHR, you can choose an IRA-based plan that fits your needs, from plans with little employer involvement, to plans that you establish and fund. That’s it: EinsteinHR sets up the funds and administers them.
Individual Retirement Accounts
As an employer, you can help your employees set up and fund their IRAs. It’s a simple concept: What the employee receives at retirement depends on the funding of their IRA and the earnings (or income) on those funds.
EinsteinHR can help with four types of IRA-based plans:
Payroll Deduction IRA
An employee establishes an IRA (either a Traditional IRA or a Roth IRA) with a financial institution and authorizes a payroll deduction for the IRA.
Traditional IRA
This personal savings plan provides tax advantages for saving for retirement. Contributions to a traditional IRA may be tax deductible – either in whole or in part. Also, the earnings on the amounts in the IRA are not taxed until they are distributed. The portion of the contributions that was tax deductible also does not get taxed until distributed.
Through EinsteinHR, employees can establish a traditional IRA at many different financial institutions, including banks, insurance companies and brokerage firms.
Roth IRA
A Roth IRA differs from a traditional IRA in that contributions to a Roth IRA are not tax deductible (contributions to a traditional IRA may be deductible). However, while distributions (including earnings) from a traditional IRA may be included in income, the distributions (including earnings) from a Roth IRA are not included in income. For both IRA types – traditional and Roth – earnings that remain in the account are not taxed.
Through EinsteinHR, employees can establish a Roth IRA at the same types of financial institutions as a traditional IRA.
SARSEP (Salary Reduction Simplified Employee Pension Plan)
A SARSEP is a SEP set up before 1997. The plan includes a salary reduction arrangement. Because this is a simplified plan, the administrative costs should be lower than for other more complex plans. Instead of establishing a separate retirement plan, in a SARSEP, employers make contributions to their own Individual Retirement Account (IRA) and the IRAs of their employees, subject to certain percentages of pay and dollar limits.
SEP
A SEP is a Simplified Employee Pension plan. A SEP provides employers a simplified method to make contribution.
SIMPLE IRA Plan
A SIMPLE IRA plan is a Savings Incentive Match Plan for Employees. It gives small businesses a relatively easy method to make contributions toward their employees’ pension and their own retirement. Under a SIMPLE IRA plan, employees may choose to make salary reduction contributions and the employer makes matching or non-elective contributions. All contributions are made directly to an IRA set up for each employee.
To get started with one of these plans, call EinsteinHR’s benefits department at 877-687-3622 (emc2).
EinsteinHR offers nationwide (IRA) Individual Retirement Account planning services, get a quote.
For more information on EinsteinHR’s IRA Individual Retirement Account planning services, contact an EinsteinHR IRA Individual Retirement Account planning specialist at 877-687-3622 (emc2).
