These employer-sponsored retirement plans enable employees to contribute a percentage of their pay, tax-deferred, into an individual savings account. The amount of the benefit is based primarily on the amount contributed by the employee.
One of the most well-known and popular employer-sponsored retirement plans is the 401(k), which enables employees to contribute pre-tax income through salary deferrals, and to which employers may make matching contributions. Ascensus offers a variety of 401(k) plans for businesses of all sizes.
A 403(b) plan enables employees of nonprofit, education, and healthcare organizations to save for retirement by contributing pre-tax dollars from their paycheck, and is subject to ERISA requirements. This type of retirement plan is typically the primary plan offered by the employer.
Similar to the ERISA 403(b), a non-ERISA 403(b) enables employees of nonprofit, education, and healthcare organizations to save for retirement by contributing pre-tax dollars from their paycheck, and is exempt from ERISA regulations. A non-ERISA 403(b) plan is typically supplemental to another type of retirement savings offering.
A governmental 457(b) plan is an employer-sponsored, tax-advantaged retirement plan available to state and local government employees. With its high contribution limits, it can be used in conjunction with other tax-advantaged accounts to increase retirement savings.
A prevailing wage retirement plan addresses the requirements of the Davis-Bacon Act by using the fringe benefit component of prevailing wage to fund a qualified retirement plan.
