Thought Leadership on Deferred Benefits presented by Schiff Benefits Group.
As a business owner, it’s a delicate task balancing compensation, benefits and profitability at any time, let alone during uncertain economic times such as these. Rarely is base salary and health insurance enough to attract that top performer or, even more importantly, keep your top salesperson, head of a division, or relationship manager that your organization would be lost without. So what can you do?
In 2004, the government actually helped define programs that can be done pre-tax or after tax, depending on the needs or structure of the company, and the employees you are trying to take care of can be given different benefits depending on their income, job title or duties. These programs fall under Internal Revenue Code (IRC) 409A and require that you “carve out” the participants from your normal 401(k) or welfare benefit for this plan to meet IRS rules. Unlike 401(k) rules, which do not let an employer discriminate in favor of a few employees, have quarterly reporting, and must include everyone, there can be tremendous flexibility and limited administration with these types of plans.
Watch the video below to learn more about the ins and outs of retaining some of your best people, and learn how to help your business reward those who are important to the growth of your company.
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