Forty years on the clock preparing to lose all track of time.

Your business' retirement plan not only helps you attract and retain good employees, but also promotes the productivity and loyalty of your staff. Help your employees save for their retirement with a retirement plan.

Retirement/pension plans are a form of "deferred compensation" that became popular during World War II when wage freezes prohibited pay increases. Generally, retirement plans can be divided into two broad types: defined benefit and defined contribution. A defined benefit plan promises the participant a specific monthly benefit at retirement and may state this as an exact dollar amount. A defined contribution plan provides an individual account for each participant. The benefits are based on the amount contributed and are also affected by income, expenses, gains and loses.

Today, retirement plans are a key element of employee benefits programs and a way to retain good employees. Longer life spans and lingering uncertainty about government-based plans underscore the growing importance of providing a solid retirement plan for your employees. As an employer you may choose from a wide variety of retirement plans when designing a benefits package for your employees. Let our trust professionals explain your alternatives and help you select the one that's best for your business.

401(k)

The 401(k) is one of the most popular retirement plans for employers and employees alike. Although a 401(k) is appropriate for any size business that wants to offer employees the opportunity to save for their own retirement, it tends to be most suitable for businesses with more than 25 employees. Employees can make annual pre-tax, salary deferral contributions and employers can make optional matching contributions. A variety of vesting schedules may be used.

Profit Sharing

A profit sharing plan allows the flexibility to determine annually how much will be contributed to the plan out of profits or otherwise. As an employer, you'll decide whether, or how much, to contribute annually. The plan contains a formula for allocating to each participant a portion of each annual contribution. A profit sharing plan may or may not include an employee salary deferral option. Different vesting schedules may be used to encourage employee loyalty.

Self-directed IRA

You decide your investments with a self-directed IRA. You may select from a variety of investment options including individual securities, mutual funds and bank deposits. You ultimately decide how your funds are invested and we're here to help if you want our advice.

Simplified Employee Pension (SEP)

SEPs are an ideal plan for business owners, self-employed individuals, or those operating a business on the side. They provide maximum flexibility for contributions, allowing you to set aside a different percentage each year. It is typically preferred by self-employed individuals or business owners with only a few employees. Contributions to a SEP for your employees and yourself are tax-deductible as a business expense. These programs are simple and inexpensive.

Savings Incentive Match Plans for Employees (SIMPLE)

SIMPLE IRAs allow employees to participate in funding their own retirement without the expenses associated with traditional employer-sponsored retirement plans. This type of plan encourages employees to participate through salary reductions. Employers are also required to make contributions to eligible employees on a yearly basis. A SIMPLE plan is ideal for small business because it allows employers to offer a great added benefit, and it's . . . well . . . SIMPLE.

All of these services are available from our trust department.

Bank deposits are insured by the FDIC. Investments in stocks, bonds, and mutual funds are not FDIC insured, may involve the loss of principal, and have no bank guarantee.