EMPLOYER RESOURCES
Learn About 401(k) and 403(b) Plans for Small Businesses and Not-for-Profits.
Individuals in all professions should have access to retirement benefits. At NESA, we make it easy for employers to offer 401(k) and 403(b) plans to their staff with resources to succeed.
401(k) Plans
Most popular type of plan among businesses that has been adopted as a retirement plan for American workers.
403(b) Plans
The go-to plan for public institutions and 501(c)(3) organizations that functions much like a 401(k) plan.
401(k) vs. 403(b): Benefits & Differences
401(k) plans are generally offered by private, for-profit companies, while 403(b) plans are only available to nonprofit organizations and government employers.
How to Set up a 401(k) Plan for Small Business Employees
Driven by retention and recruiting pressures, the need for small business 401(k) plans is shifting from “want-to” to a “need-to.”
Small Business Tax Credit for 401(k) Startup Costs
Starting a new 401(k)? Your small business may be eligible to receive up to $16,500 in tax credits over the plan’s first three years to help offset initial fees.
401(k) Tax Advantages
Businesses can usually deduct contributions made to a qualified plan, including those made for their own retirement.
Owner's Business & Personal Objectives
If the company is a small or closely held firm, then the owner’s personal and business objectives are essential in plan selection
401(k) And 403(b) Plan Design
When you sponsor a new retirement plan or make changes to your organization’s existing plan, you have the opportunity to design a plan that works for your organization and your employees.
Safe Harbor Plan
Put simply, a Safe Harbor is a type of a plan with an employer contribution that allows you to avoid most annual compliance tests, thereby allowing business owners and organization executives to maximize their annual contributions.
Top Heavy Rules
The top heavy determination is one of the non-discrimination testing required by the IRS to ensure plans do not disproportionately favor certain owners and officers.
Roth Contributions
With Roth employee deferrals, contributions are made with after-tax dollars.
401(k) And 403(b) Plan Administration
401(k) and 403(b) administration is the process of maintaining a retirement plan and keeping it compliant with the Employee Retirement Income Security Act of 1974 (ERISA). This means that the plan must complete multitude of tasks annually from distributing required notices, performing non-discrimination testing to filing certain government forms.
Large 401(k) And 403(b) CPA Audit
IRS requires that a 401(k) or 403(b) plan perform an annual independent CPA audit when the plan’s total “eligible participant” count reaches 100. There are some exception to this rule, however.
ERISA Fidelity Bond
ERISA (Employee Retirement Income Security Act of 1974) requires almost all qualified employer-sponsored retirement plans to be covered by a fidelity bond. The primary purpose of the bond is to protect retirement plan participants against losses caused by acts of fraud or dishonesty.
Required Minimum Distributions (RMDs)
An RMD is an IRS-mandated amount of money that a participant must withdraw from traditional IRAs or an employer-sponsored retirement account each year. It’s important to understand when you need to take an RMD, how to avoid potential costly penalties for late distributions, and maximize your withdrawal strategy.
How Profit Sharing Contribution Works
Businesses and organizations can provide a pretty sweet, optional 401(k) feature dubbed “profit sharing.” It’s the most flexible type of employer contribution a company can make to their retirement plan.
How 401(k) Match Works
Employer matching contributions in a 401(k) plan involve employers matching a portion of employees’ contributions, encouraging retirement savings. This benefit provides tax advantages and enhances employee retention and retirement readiness.
Mega Backdoor Roth
The mega backdoor Roth is a transformative financial strategy that elevates traditional retirement savings to extraordinary levels. It empowers individuals, especially high earners, to contribute significant after-tax dollars beyond standard limits and strategically convert them into a tax-free haven, whether it’s a Roth 401(k) or Roth IRA, providing unmatched advantages in building a robust and tax-efficient retirement portfolio.
Contributing to Multiple 401(k) Plans
Today, a growing number of individuals are navigating dual-income scenarios, concurrently engaging with multiple retirement plans. When approached with precision, the act of contributing to multiple 401(k) or 403(b) plans unfolds a myriad of advantages. This includes the strategic exploitation of tax benefits and the diversification of investments. This article explores the prudent ways in which individuals can harness these advantages, providing a roadmap for optimizing financial outcomes while managing multiple retirement avenues.
Retroactive 401(k) Plan Adoption
The SECURE Act revolutionized retirement savings by allowing employers to retroactively adopt 401(k) plans, streamlining the process and offering flexibility. Deadlines for adoption vary based on business structure, extending to March or April with extensions available, catering to S-Corps, partnerships, C-Corps, and sole proprietorships. Moreover, businesses can benefit from a valuable tax credit under the SECURE Act, covering up to 100% of the costs of establishing and administering a plan, encouraging adoption and enhancing financial security for both employers and employees.