The success of your business may very well rest on the unique skills and abilities of a core group of key employees who would be very difficult to replace. A well-planned employee benefit program can provide incentives that may help you retain and reward those employees.
Your Northwestern Mutual Financial Network Representative in partnership with a Strategic Employee Benefit Specialist will prepare a plan tailor made to your business.
Qualified Plans can provide tax efficient ways for your employees to save for retirement. Under certain circumstances, business owners can also receive substantial retirement benefits under these plans. Funding of qualified retirement plans is generally tax deductible and tax deferred for employees until the time benefits are actually received in retirement.
Defined Benefit, Defined Contribution, SEPP, and SIMPLE IRA are some of the most common qualified plans. All of these plans can be funded with annuities.* Some can use mutual funds or life insurance.
Non-qualified employee benefit plans offer you an additional means of providing retirement benefits over and above what is provided by the company's qualified benefit plans using after-tax dollars.
Selective plans are usually unfunded. However, the business can choose to set aside funds or purchase assets, such as life insurance, to informally fund the benefit. No separate fund exists to support the benefit, it must come from the assets of the business.
Careful consideration must be given to fashioning a nonqualified employee benefit plan because there are tax considerations and other criteria to consider.
Determining which employee benefits to offer your employees can be a complicated process. Among other things, there are tax implications and cost structures to consider. Working with a Financial Representative, a Strategic Employee Benefit Specialist can offer you guidance and expertise as well as access to a top selection of high-quality, competitively priced benefit solutions. Contact a Specialist near you to get started.