ERISA Plans

The Value of a Plan

INVESTING IN YOUR EMPLOYEE’S FUTURE IS THE BEST INVESTMENT BACK INTO YOUR COMPANY!!!

The most important investment that you can make in your company is the employees that work for the organization. They are not only creating or selling your product, but they are also an advocate for the brand, and a representative of the core values the company carries in the public eye.

There are many different options for an employer to take care of their employees. One of those ways is to establish a Qualified Retirement Plan that will allow the employee to establish a plan earmarked and focused on future financial growth. Pensions that used to give employees a sense of security by providing a guaranteed income in retirement years have been phased out over the years, leaving very few establishments that still offer that security. It is now up to the individual to plan for income in his or her later years. This is where ERISA comes into place and a Fiduciary that keeps up to date with the rules and regulations that are always changing.

Providing an employer-sponsored plan for your employees allows them to put away for retirement Pre-Tax before receiving that money in their paycheck. There is a better chance the individual will contribute to their retirement prior to receiving the funds in their paycheck than after they receive the funds. This is because they factor in the deduction from their paycheck as money they never received and cannot spend.

There are different types of Qualified Plans that can be established. Your type of business registration, employees, and other factors will dictate the type of plan that you should establish.

Below is some information to give you a brief description of the options available to businesses and corporations. To determine the plan best suited for your business, please contact an advisor to assist you.

ERISA PLANS in the marketplace

DEFINED CONTRIBUTION PLANS & DEFINED BENEFIT PLANS

A defined-contribution plan is a retirement plan that is typically tax-deferred (401k, 403b, 457), in which employees contribute a fixed amount or a percentage of their paychecks to an account with the intention of funding their retirement. The sponsoring company will sometimes match a portion of employee contributions as an added benefit, but it is not required. Defined-Benefit plans are company pension plans wherein an employee's pension payments are calculated based on the length of service and the salary they earned up to their retirement. Defined-Contribution plans can be contrasted with Defined-Benefit pensions, in which retirement income is guaranteed by an employer. Defined-Contribution plans offer no guarantees, and participation is voluntary.

DEFINED CONTRIBUTION PLAN

A defined contribution plan is a retirement plan in which the employer or employee, or both, make contributions into the plan on a regular basis. Individual accounts are established for participants. Benefits are based on the amounts credited to these accounts, along with any investment earnings on the funds.

in the account.

DEFINED BENEFIT PLAN

A defined benefit pension plan is a plan where an employer/sponsor promises a specified pension payment, a lump-sum, or the combination thereof on retirement that is predetermined by using a formula based on the participant's earnings, tenure of service, and age instead of depending directly on investment returns. Most governmental and public entities provide defined benefit plans as a means of compensating workers.

401K ~ 403B ~ 457 QUALIFIED PLANS

401k ~ 403b ~ 457 plans are company-sponsored retirement accounts that employees can contribute to. Employers may also make matching contributions. This money is typically invested in securities that are focused on your goals and objectives. Ruggiero Group Benefits Agency, LLC can offer a wider range of investment choices for these plans because we do not have a proprietary product but would rather establish a plan that is in the best interest of the employer and employee. Each participant will have the opportunity to work with an advisor one-on-one to establish their plan and discuss the financial goals and objectives they have outside of the qualified plan.

401k

A 401(k) plan is a tax-advantaged retirement account offered by many employers to their employees. Workers can make contributions to their 401(k) accounts through payroll withholding, and their employers can match contributions. Contributions are invested towards retirement.

403b

A 403(b) plan is a retirement plan for specific employees of public schools, tax-exempt organizations, and certain ministers. Workers can make contributions to their 403(b) accounts through payroll withholding, and their employers can match contributions. Contributions are invested towards retirement.

SEP IRA

A Simplified Employee Pension IRA, or SEP IRA, is a traditional IRA that lets self-employed individuals and small-business owners contribute additional funds that are capped each year toward retirement. Contribution rules mean these plans tend to be best for companies with few or no employees. Contributions are invested towards retirement.

SIMPLE IRA

Savings Incentive Match for Employees. A SIMPLE IRA is an employer-sponsored retirement plan available to small businesses that have less than 100 employees. Small businesses are in favor of SIMPLE IRAs because they are a less expensive and less complicated alternative to a 401(k) plan.

partners in a ERISA Plan

There are multiple partners in a ERISA Plan

Financial Advisor

The role of the financial advisor (Ruggiero Investments) is to work directly with owners or the human resources department to establish or review the plan. This requires working with the existing or bringing in the right partners (TPA, Custodian, 3(38), 3(16), CPA, & attorney) and ongoing management of the ERISA plan to stay within the guidelines and regulation. From there, The Financial Advisor (Ruggiero Investments) will work with the employees to onboard them to the appropriate contribution, allocation, and funds along with providing additional financial advice that the employee may have.

TPA

The manager of the administration, recordkeeping, and reporting for the plan. Although we work with many TPA’s, having the right fit for your needs is important when choosing a TPA. The confidence that we have in our TPA partners stems from years of working together, transparency, follow-through, and customer service.

Custodian

In the context of an ERISA (Employee Retirement Income Security Act) plan, a custodian is a financial institution (like a bank or trust company) that holds and safeguards the plan's assets, acting as a safekeeper, but without discretionary authority over the assets.

3(38) Fiduciary

A 3(38) Fiduciary is important to the team is a 3(38) Fiduciary. Their role is to manage investment selection and make changes accordingly. The fund line-up they provide should be well diversified, fund costs are in line, very easy to work with.

3(16) Fiduciary

The 3(16) Fiduciary removes most liability from the Plan Sponsor. They are reviewing and double-checking the work to make sure that all the t’s have been crossed and the i’s dotted.

CPA’s -

CPA's are making sure the business and the owners are meeting the tax goals and savings. Working in sync with the right CPA is going to keep you out of the crosshairs of the IRS. The right CPA is up to date with the ongoing law changes and guidelines of the IRS.

Attorney’s

It is important to make sure that your legal entity is appropriate for the business. Businesses change and grow; you want to make sure you are in the right entity and protected.

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Ruggiero Investments is a wholly owned Independent Registered Investment Advisor (RIA) registered with the SEC. For specific state registration, please review the Investment Advisor Public Disclosure link (https://www.adviserinfo.sec.gov/IAPD/) Investments involve risk and are not guaranteed. Securities and insurance products are not insured by FDIC or any bank agencies 2. May Lose Value 3. Not a Deposit of or Guaranteed by a Federal Government Agency or any Bank affiliates.

Ruggiero Investments® is not a tax advisor.

All tax implications of your investments should be made in consultation with your independent tax advisor.

Ruggiero Investments® does not provide tax or legal advice.

Insurance and Benefits are through Ruggiero Investments subsidiaries.

To check the background of this (these) broker(s), please visit BrokerCheck at www.finra.org.

Subsidiaries: www.ruggieroinsuranceagency.com & www.ruggierogroupbenefits.com