Coverage
Retirement Plans
Build a retirement benefits program that helps employees achieve financial security while giving your business valuable tax advantages. ALKEME advises on plan design, provider selection, and fiduciary compliance.
The challenge
Plan fees compound quietly and fiduciary responsibility does not go away because a recordkeeper handles the paperwork. Most employers cannot say what their participants are actually paying.
How ALKEME solves it
We benchmark fees against comparable plans, document the review so the fiduciary file is defensible, and push for participation through education rather than an annual email nobody reads.
Fee benchmarking documented, so the decision is evidenced.
What Retirement Plans Cover
Employer-sponsored retirement plans come in several forms, each with distinct contribution structures, tax treatment, and regulatory requirements. The 401(k) plan is the most common defined contribution vehicle for private-sector employers, allowing employees to defer a portion of their salary on a pre-tax or Roth after-tax basis, with optional employer matching or profit-sharing contributions. Elective deferral, catch-up and total annual addition limits are set by the IRS and indexed every year — confirm the current plan-year figures before relying on them.
The 403(b) plan serves tax-exempt organizations, public schools, and certain ministers, with contribution limits that mirror the 401(k). Profit-sharing plans allow employers to make discretionary contributions based on company performance without requiring employee deferrals. Defined benefit pension plans guarantee a specific monthly benefit at retirement based on a formula involving salary history and years of service, funded by employer contributions determined by an actuary. Cash balance plans combine features of defined benefit and defined contribution designs, providing a notional account balance that grows with annual employer credits and interest credits.
Who Needs Retirement Plans
Virtually every employer benefits from offering a retirement plan. For small businesses, a 401(k) or SIMPLE IRA demonstrates commitment to employee financial wellbeing and provides business owners with a tax-advantaged savings vehicle for their own retirement. The SECURE Act and SECURE 2.0 legislation introduced tax credits that offset startup costs for small employer plans, making retirement benefits more accessible than ever for businesses with fewer than 100 employees.
Mid-size and large employers use retirement plans as a cornerstone of their talent strategy. In a competitive labor market, the structure of employer matching contributions, vesting schedules, and investment options can be a deciding factor for candidates evaluating multiple job offers. Professional services firms, medical practices, and high-income businesses may benefit from defined benefit or cash balance plans that allow substantially higher tax-deductible contributions than defined contribution plan limits permit. ALKEME assesses each employer's workforce demographics, cash flow, and strategic goals to recommend the optimal plan type and design.
Why Retirement Plans Matter
Employer retirement plan contributions are tax-deductible business expenses that reduce taxable income in the year they are made. Employee pre-tax deferrals reduce current income taxes for participants, and Roth deferrals provide tax-free growth and withdrawals in retirement. Matching contributions serve as a powerful incentive that increases employee participation and savings rates, improving retirement readiness across the workforce.
Fiduciary responsibility is a critical consideration for any employer sponsoring a retirement plan. Plan fiduciaries must act prudently, diversify investments, follow plan documents, and ensure fees are reasonable. Failure to meet these obligations can result in personal liability for fiduciary breaches. ALKEME helps employers establish sound governance frameworks, conduct regular fee benchmarking studies, and implement investment policy statements that document prudent decision-making. Our advisory relationships include ERISA Section 3(21) co-fiduciary and 3(38) discretionary investment management referrals to share or delegate the fiduciary investment burden.
Key Features of ALKEME's Retirement Plan Consulting
- ●Plan type analysis including 401(k), safe harbor 401(k), 403(b), profit sharing, defined benefit, cash balance, SEP IRA, and SIMPLE IRA
- ●Recordkeeper and TPA selection with fee transparency benchmarking against industry databases
- ●Employer matching and profit-sharing contribution design to maximize participation and tax efficiency
- ●Vesting schedule optimization to balance retention incentives with competitive market standards
- ●Automatic enrollment and automatic escalation program design to boost participation rates
- ●Investment menu construction with fiduciary oversight and quarterly performance monitoring
- ●Nondiscrimination testing support including ADP/ACP, top-heavy, and coverage testing
- ●SECURE 2.0 compliance guidance including Roth catch-up requirements, long-term part-time employee eligibility, and student loan matching provisions
- ●Employee financial wellness education and retirement readiness workshops
Frequently Asked Questions
Industries That Need This Coverage
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