Qualified Retirement Plans
In order to recruit and retain employees, businesses are now realizing the importance of having a retirement plan. A retirement plan is an added benefit, which in turn, will increase employee satisfaction and productivity. Choosing the right plan involves careful decision making as each plan has its own distinct advantages. However, no matter what plan you choose, Century Bank and Trust will provide sound investment management within the guidelines set forth by you and your employees.
401 (k)/Profit Sharing Plans
A 401(k) plan allows your employees the opportunity to defer a portion of their wages in order to save for retirement. In doing so, they avoid current income taxes and the money continues to grow tax-deferred. No tax will be due until the plan benefits are distributed. As the employer, you also have the ability to make tax-deductible contributions to the plan as a “match”.
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Features
A Profit Sharing Plan offers the most flexibility in regards to making contributions. Company contributions may be determined by a formula written into your plan or made at the discretion of the company’s board of directors or other governing body.
- Personal investment management with your Trust Officer
- Several investment choices
- Quick, accurate service
- Local Trust Officers
- Income collection of all plan investments
- Issuing of all authorized benefit payments
- Maintenance of records
- Itemized statements
Pension Plans
Pension plans are a defined benefit plan where the benefits are fixed and are based on a formula. Once a benefit formula is derived, the employer contributes whatever amount necessary each year to fund the pension. Since the contributions depend on several variables, an actuary will be needed to determine the amount to be contributed on an annual basis.
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Features
- Investment knowledge and experience
- Collection of investment income
- Safekeeping of detailed records
- Provision of all necessary information for tax reporting
- Itemized statements detailing all transactions
- The Century Bank Trust Department works closely with the plan’s actuary to determine plan contributions and ensure the pension law’s funding requirements are met
