An employer sponsored retirement plan is a savings plan a business offers its employees, funded through voluntary payroll deductions that the employer may match up to a certain level. Funds grow tax deferred, and employees don’t pay taxes on earnings until they withdraw funds – usually during retirement.

Small businesses in the Capital Region commonly choose among a SEP IRA, a 401(k) – including Safe Harbor and SIMPLE 401(k) options – and a SIMPLE IRA. The right choice depends on how many employees are eligible, whether you want to make employer contributions, and how much administrative simplicity you need. A BSNB Financial Services advisor can compare the options with you.

With a SEP IRA, the employer contributes the same percentage of pay to each eligible employee, and contributions aren’t required every year. With a SIMPLE IRA, employees fund the plan, the employer is required to contribute a specific percentage, and funds are immediately vested.

Not necessarily. In a traditional 401(k), employees fund the plan and employer contributions are optional – though many employers contribute as an incentive to attract and keep talent. Certain plan types, such as Safe Harbor 401(k)s, do include required employer contributions in exchange for simplified compliance requirements.

No. Investment products offered through Osaic Institutions, Inc. are not FDIC-insured, are not deposits or obligations of the bank, and are subject to investment risk, including possible loss of value. This is different from BSNB deposit products, such as deposit IRAs, which are FDIC-insured.

Investment and insurance products are offered through Osaic Institutions, Inc., Member FINRA/SIPC. BSNB Financial Services is a trade name of Ballston Spa National Bank, with advisors serving businesses across Saratoga County, Albany County, and the greater Capital Region.