Defined Contribution (DC) retirement plans provide employees an easy way to save for retirement. While regulations for the general population allow for tax free funding and accrual, there are limits to these benefits, especially for highly paid employees and executives. Many employers do not fund executive defined contribution benefits because of potential tax penalties. This gives the company an unfunded liability and leaves the executives exposed to future uncertainty.
Spring has experience with many funding methods designed to provide benefit security for executives while not incurring tax penalties. Depending on the executive’s needs, these solutions can take the form of products, which provide:
- Lump-sum payments
- Ongoing payments
- Medical coverage
- Life insurance
These products can be established with a commercial insurance carrier, or a company owned captive insurance company.
Please contact us for more information about our defined contribution solutions and services.