Retirement Plan assets represent the largest pool of capital investment in the U.S. today. As competition for good employees increases, one way to attract and retain them is through excellent employee benefits. Regions Morgan Keegan Trust Retirement Services can give your business a competitive edge. Regardless of the size of your company, we can create a tax-advantaged retirement plan to fit your needs. Also, we can relieve you of many of the administrative burdens – from simple record keeping to comprehensive management. As your plan's Investment Manager and Advisor, we are here to help with all aspects of benefit planning.
Retirement Services takes a consultative approach to retirement planning. We listen to clients, work with them, and design the best retirement services for their specific company. Retirement Services offer solutions from some of the nation's top retirement providers, including Regions' 401(k) plan, or we can customize plans.
Defined Contribution Plans
The most popular retirement plan is one that permits annual contributions, either by employer and/or employee, into an account for the employee. Contributions to this type of plan are generally tax-deductible for the employer and tax-deferred for the employee. There are two types of defined contribution plans:
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Salary Deferral Plan - Usually referred to as a 401(k) plan, this type of plan allows the employee to reduce his or her salary by a certain percentage each pay period. That amount is placed in a tax-qualified retirement plan. Under 401(k) plans, employers may elect to match a certain portion of the salary reduction on their employee's behalf.
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Profit-Sharing Plan - This type of plan helps employees feel connected to the success of a company. When the company profits, the employees do too. A comprehensive profit-sharing plan can be flexible, easy to administer and provide an excellent work incentive. In addition, this type plan can provide a significant tax benefit to the employer.
Pension Plans
The cornerstone of many employee benefit programs is a tax-qualified pension plan. While creating and maintaining a pension plan can be complex and time consuming, it also allows you to provide for your employees' retirement and, at the same time, creates a tax advantage for your company. Regions Morgan Keegan Trust can help to establish and administer a pension plan that satisfies both the needs of your employees and the needs of your company in one of the following ways:
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Money Purchase Plan - This type of plan specifies your contributions, but does not guarantee a specific benefit level. Benefits are based on the account balance at retirement. This balance is determined by your contributions and the plan's investment performance.
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Defined Benefit Plan - In this more traditional pension plan, the employee's retirement benefit is based on a formula combining service and compensation and funded by company contributions. This plan promises to pay a specified amount to each person who retires after a set number of years of service to the company.
