Retirement Plan Solutions
Make Your Plan More Successful and Planning Retirement Easier for Your Employees.
Let First International Bank & Trust navigate your retirement plan with expert advice, innovative options and personalized service. In an industry with an ever changing regulatory environment and complex terminology, our aim is to help you understand what you have and how to get the most out of it through services and tools available to you all under one virtual roof.
Our retirement plan solutions team offers an array of services including plan design, best-in-class investment options, trustee services, personal and electronic participant education, fiduciary planning, recordkeeping and administration, consulting and cost analysis.
Additionally, our team utilizes a step-by-step approach that includes:
- Understanding your business objectives
- Analyzing your current plan for compliance and accuracy
- Custom designing a plan that helps meet the goal and objectives of the company
- An unbiased investment selection with open architecture
- Ongoing participant education
- A fast, simple and accurate implementation and conversion process
- Excellent customer service every step of the way
No matter what your needs entail, our retirement plan solutions team has a plan that can work for you. Read all about our plan offerings below:
- Traditional 401(k)
A qualified plan established by employers to which eligible employees may make salary deferral (pay-roll deduct) contributions on a post-tax and/or pre-tax basis. Employers offering a 401(k) plan may make matching or non-elective contributions to the plan on behalf of eligible employees and may also add a profit-sharing feature to the plan. Earnings accrue on a tax-deferred basis.
Caps placed by the plan and/or IRS regulations usually limit the percentage of salary deferral contributions. There are also restrictions on how and when employees can withdraw these assets, and penalties may apply if the amount is withdrawn while an employee is under the retirement age as defined by the plan. Plans that allow participants to direct their own investments provide a core group of investment products from which participants may choose. Otherwise, professionals hired by the employer direct and manage the employee’s investments.
- Roth 401(k)
A 401(k) feature that allows employees to make elective contributions on an after-tax basis. Withdrawals, generally after age 591/2, of money from the account (including investment gains) are tax-free. Unlike the Roth IRA, the Roth 401(k) has no income limitations for those participating in the plan, no matter what their income, is allowed to invest up to the contribution limit into the plan.
- Safe Harbor 401(k)
A safe harbor 401(k) is similar to a traditional 401(k) plan, but the employer is required to make contributions for each employee. The safe harbor 401(k) eases administrative burdens on employers by eliminating some of the complex tax rules ordinarily applied to traditional 401(k) plans.
A non-qualified, deferred compensation plan established by state and local governments and tax-exempt governments and tax-exempt employers. Eligible employees are allowed to make salary deferral contributions to the 457 plan. Earnings grow on a tax-deferred basis and contributions are not taxed until the assets are distributed from the plan.
Section 403(b) of the Internal Revenue Code allows employees of public school systems and certain charitable and nonprofit organizations to establish tax-deferred retirement plans which can be funded with mutual fund shares.
- Profit Sharing
A defined contribution pension plan that uses a variable level of contributions based on company profits. Profit sharing plans allow firms to limit allocations to a pension fund in lean years. However, they suffer from lower maximum deduction limits than standard plans.
- New Comparability / Aged Based
A new comparability plan is a type of profit-sharing plan that is similar to an age-based plan in that both types of plans allow a business to maximize the plan contributions to the older, higher paid owners and key employees while minimizing allocations to the accounts of younger employees. New comparability plans, however, take this one step further than age-based plans by also putting employees into different groups or categories (rather than strictly using age) and each category may have a different contribution formula.
- Defined Benefit
An employer-sponsored retirement plan where employee benefits are sorted out based on a formula using factors such as salary history and duration of employment. Investment risk and portfolio management are entirely under the control of the company. There are also restrictions on when and how you can withdraw these funds without penalties.
- Cash Balance
A pension plan under which an employer credits a participant’s account with a set percentage of their yearly compensation plus interest charges. A cash balance pension plan is a defined benefit plan. As such, the plan’s funding limits, funding requirements and investment risk are based on defined benefit requirements: as changes in the portfolio do not affect the final benefits to be received by the participant upon retirement or termination, the company solely bears all ownership of profits and losses in the portfolio.
- Employee Stock Ownership Plan (ESOP)
A qualified, defined contribution, employee benefit (ERISA) plan designed to invest primarily in the stock of the sponsoring employer. ESOP’s are “qualified” in the sense that the ESOP’s sponsoring company, the selling shareholder and participants receive various tax benefits. ESOP’s are often used as a corporate finance strategy and are also used to align the interests of a company’s employees with those of the company’s shareholders.
ESOP’s can be used to keep plan participants focused on company performance and share price appreciation. By giving plan participants an interest in seeing that the company’s stock performs well, these plans are believed to encourage participants to do what’s best for the shareholders, since the participants themselves are shareholders.
- Money Purchase Pension
A defined contribution plan in which employer contributions are usually determined as a percentage of pay. Forfeitures resulting from separation of service prior to full vesting can be used to reduce employer’s contributions or be allocated among remaining employees.
- Non-Qualified Deferred Compensation 457
An employer-sponsored retirement plan that falls outside of employee retirement income security act (ERISA) guidelines. Non-qualified plans are designed to meet specialized needs for key executives and other select employees. These plans are also exempt from the discrimination and top-heavy testing that qualified plans are subject to.
The contributions made to the plans are usually nondeductible to the employer, and are usually taxable to the employee as well. However, they allow employees to defer taxes until retirement, when they are presumably in a lower tax bracket. Non-qualified plans are often used to provide specialized forms of compensation to key executives or employees in lieu of making them partners or part owners in the company or corporation.
- Permitted Disparity
Qualified plans may be integrated with Social Security to balance the benefit bias toward lower paid employees that is inherent in the Social Security system. Under an integrated plan, greater contributions or benefits are provided for higher paid employees whose compensation exceeds than Social Security wage base.
The “permitted disparity” places a limit on the allowed difference between either benefit accruals or contributions for highly paid employees vs. lower paid ones.
- Self Employed Retirement Plan (SEP)
A retirement plan that an employer or self-employed individuals can establish. The employer is allowed a tax deduction for contributions made to the SEP plan and makes contributions to each eligible employee’s SEP IRA on a discretionary basis. Contributions to SEP IRA’s are immediately 100% vested, and the IRA owner directs the investments.
- Solo 401(k)
A Solo 401(k) is similar to a traditional 401(k) except it is designed for a small business owner or sole proprietor. Eligible participants for a Solo 401(k) are businesses that employ the owner and their spouse. The business must not have any other eligible employees.)