401(k)
First Retirement Plan Can Help
Maybe you think a retirement plan is too
complicated or expensive to consider. That might've been true in the past, but not
anymore.
You can take control with the easy-to-establish, easy-to-maintain First Retirement 401(k)
-- a plan that can help you and your employees get ready for retirement.
When you use a First Retirement Plan, you and your employees
can reap attractive benefits -- both for today and for tomorrow.
A win-win program
for your business ... and for you and your employees
Answer a Universal Concern
Your employees are your business.
Attracting and retaining high quality employees is key to success in today's competitive
business environment. A 401(k) plan adds a popular employee program to your benefits
package -- without burdening your bottom line.
Retirement planning power. Few programs beat the
ability of a 401(k) plan to help build assets for retirement. With generous contributions
limits far in excess of other plans like Individual Retirement Accounts, you can provide
employees with a powerful retirement planning tool.
Say Thanks to Uncle Sam
Tax savings for your business. Retirement plans have
been called "the last legal tax shelter." That's because within legal limits,
contributions to a qualified retirement plan are federally tax deductible. That can help
reduce your business' overall tax liability.
Increase employees' income without giving them a raise.
Since 401(k) contributions are made with pre-tax dollars that are deducted "right off
the top" of income, plan participants can save dollars that would otherwise be paid
in personal income taxes.
A Proven Motivator
Encourage employee participation. Generally the
success of a 401(k) plan is in part determined by the number of employees that participate
in the plan. Employer contributions can be used as an incentive to encourage employee
participation.
Give employees a "stake" in the future. A
proven way to boost productivity is by giving employees an incentive to work harder.
Employer contributions can be an effective tool to increase productivity and reward your
employees for a job well done.
You probably have some questions about how a First Retirement
Plan works. The following answers should address most of your questions. Because we can't
include everything, it's a good idea to consult with your legal or tax adviser before you
implement this, or any, qualified retirement plan.
How do I know if my business can
participate in a 401(k)?
If you're a sole proprietor, partnership, or corporation,
you're eligible.
What if my business already has a
qualified plan?
No problem. You can still have a First Retirement Plan in
addition to your current plan. But, keep in mind that there are some overall contribution
limitations you can't exceed if you elect to maintain both plans.
Does the business have to include all
the employees in the plan?
You can tailor the eligibility requirements of your plan,
but generally you must include employees who are at least 21 years old and have one year
of service.
Do I have to match the employees'
contributions? I don't know if I can afford to.
No, you don't have to provide matching contributions.
However, there are a couple of good reasons to consider doing so. First, matching
contributions often encourage employee participation in the plan. And that's a good thing
since the amount of income highly paid employees (like an owner or top management) can
contribute to a 401(k) -- and shelter from income taxes -- depends on the average of what
lower paid employees contribute. Second, many employers find that matching contributions
can be a cost-effective way to motivate employees and reward them for a job well done.
What about profit sharing
contributions? Do I have to provide those, too?
Profit sharing contributions are not required. However,
the option is included in the plan so you can provide them if you choose to.
How are employees vested in any
contributions the business decides to make?
Under the Internal Revenue Code, employee contributions
are immediately 100% vested. However, you don't have to immediately vest any contributions
made by your company. You can choose a vesting schedule that takes several years before an
employee is totally vested in the money you have contributed.
Who decides how employee
contributions are invested? Am I going to have to become a portfolio manager on top of
everything else I do?
Not at all. Actually this is one of primary benefits of a
First Retirement Plan. Your employees decide how to invest the dollars they're building in
their 401(k) plans. They can choose the fund, or combinations of funds available in the
plan, that most closely meets their retirement goals and risk tolerance. One less thing
for you to worry about.
Can I make changes to the plan once
it's established?
If you don't reduce the benefits to the employees who are
participating, you can make changes (as long as they're authorized in the plan documents)
at any time.
If I decide to offer a 401(k) plan,
how can I make sure it'll be successful?
Employee participation is absolutely key to a successful
401(k) plan. Once you adopt the plan, you'll want to tell employees about the short- and
long-term benefits of participating and encourage them to get on board.
How am I going to do that? I don't
have time to prepare a big meeting.
Don't worry. We provide you with lots of support,
including payroll statement stuffers and a video presentation. Once the plan is started,
you'll want to remember to explain the many benefits of the plan as you hire new
employees. That will help to keep the interest in the program at a high level.
I've heard these plans are really
complicated to adopt. Isn't it going to take a lot of time to fill out the forms?
Not with a First Retirement Plan. We simplified and
streamlined the process and the documents to keep it as easy as possible. In fact, most
companies find they can complete the paperwork in about an hour.
How soon can my employees begin using
the plan?
You can make that decision. But once the plan is in place
and has been announced, you'll probably want to begin the first day of the next pay
period.
A First Retirement Plan is a one-source program that
provides you with everything you need to start saving for the retirement you deserve
- with a flexible pricing structure that's designed to help you watch your bottom
line.
We help you:
Save time and money with our pre-approved plan document.
Motivate your employees with comprehensive educational materials,
including a video, highlighting the benefits of participating in a 401(k) plan.
Get the plan up and running with our complete and easy-to-use enrollment
package.
Conduct testing requirements for IRS non-discrimination regulations.
Track your program with timely account information and transaction
processing and detailed account statements.
Mutual Fund Investing through the First Omaha Family of Funds. A
professionally managed family of seven no-load funds. Other mutual funds are available for
an additional cost.
Whether you want us to help you simply establish a 401(k)
plan or handle complete administrative services including completion and filing of tax
forms, a First Retirement Plan can provide the retirement plan services you want - without
straining your benefits budget.
For More Information on Starting Your
Plan
Call First Retirement Plan at 1-800-401k-460 or e-mail us at: firstretirementplan@fnni.com.
Please remember to always consult your tax and/or legal advisers for guidance in
selecting the Plan which would be best for your business. These materials are not intended
to constitute legal or tax advice.
Notice to Investors
Shares of First Omaha Funds are:
| NOT FDIC INSURED |
May lose value |
No bank guarantee |
An investment in the U.S. Government
Money Market Fund is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. Although the Fund seeks to preserve the
value of your investment at $1.00 per share, it is possible to lose money by investing in
the Fund.
First Omaha Funds are distributed by an
independent third party, SEI
Investments Distribution Co.
