Learn about the 5 Best Retirement Plans For Non-Profits in our quick and handy, easy-to-use guide. Retirement plans have one major purpose: to retain and attract good, valuable employees who will reward employers with long service and performance. Good retirement plans will act as incentives for your potential and current employees. We break down some of the best ones.
- Payroll Deduction IRA. Payroll Deduction IRAs are good for the simple fact that they are hassle-free to set up and maintain. Employers and employees benefit mutually because employers can transmit contributions on behalf of employees to the IRA while being under no pressure of an annual filing requirement. Employees are empowered with the decision to contribute how much they want at any time!
- 403(b). Allowing high levels of salary deferrals by employees and special "catch-up" contributions, these plans have many benefits. They also let employees and employers alike contribute to the plan while allowing rollovers into other, eligible retirement plans.
- 457(b). These retirement plans are designed with non-church tax exempt organizations in mind and feature funding that comes primarily from the employer. There's a small hitch involved, which requires that employees pass a minimum coverage test, but other than this, the plan helps out employees by mandating that employers make arrangements on their behalf to make contributions.
- Defined Benefit Plan. The good thing with these kinds of retirement plans is that the benefit for employees is fixed and also pre-established. While there is no model form to set this plan up, a requirement is that an actuary has to determine the annual contributions for this retirement plan.
Simple IRA Plan. The Simple IRA Plan requires very little administrative paperwork and is an option for employers who have 100 or less employees and, this is important, who have no other plan at the same time. Employees can make their own decisions about how much to contribute, but employers have to make matching contributions!