At RMKT Retirement Services, we take a unique approach to managing your retirement plan. We act as consultants to help you evaluate your current program and find the best solution that fits the size, demographics and goals of your company and your employees. We provide a local presence supported by 17 offices in 16 states and the knowledge of 40 trust officers who average 18 years of experience and manage more than 1,400 retirement plans.
With our Total Plan Solutions, RMKT Retirement Services works with you to create a specialized plan that meets all of those needs. We offer a variety of solutions from best in class providers that can fit a plan of any size, including:
RMKT Retirement Services Total Plan Solutions offers consulting services in the following areas:
401(k) Plans
401(k) plans are the most common type of employer sponsored retirement plans. These plans give eligible employees the option to save funds by electing a percentage of their pre-tax pay to go into the plan. This allows the money to grow tax-deferred until withdrawals are made. 401(k) plans may also feature a Roth option which allows employees to make after-tax contributions. Roth 401(k) plans typically allow tax-free qualified distributions of both contributions and earnings.
Often times, employers choose to match the employees’ contributions, and provided that requirements are met, the employer contributions are tax deductible. 401(k) plans may also allow employees to make withdrawals in the case of hardships or borrow against the funds they have contributed at the employer’s discretion.
Profit Sharing Plans
Profit sharing plans offer the most flexibility to the employer regarding contributions. Only the employer may contribute to the plan, and the amount of the contributions is based on a formula written into the plan. The flexibility of profit sharing plans allows the option for contributions to be made even in years when the company does not produce a profit. Many companies also add a 401(k) plan to the profit sharing plan to allow employee contributions.
Contributions to profit sharing plans are typically allocated to employees based on compensation. The maximum tax-deductible contribution amount is not to exceed 25% of the total compensation of employees in the plan. Upon retirement, an employee’s benefits are based on their account balance which reflects their years of service, the company’s contributions, and the plan’s investment performance. Since the company’s profitability has a direct impact on the amount employees receive from the profit sharing plan, it often motivates employees to act in the company’s best interest.
Money Purchase Plans
Money purchase plans are for companies who want to commit to making pre-determined contributions every year. Employers are required to contribute a specified percentage of each participating employee’s salary regardless of the profitability of the company. Employers are not allowed to under- or over- contribute to the plan. As with a profit sharing plan, the maximum tax deductible contribution is equal to 25% of the total salary of participating employees.
Defined Benefit Plans
Defined benefit plans offer plan participants a fixed income upon retirement. The amount paid is based on a formula written into the plan and can be based on a percentage of their salary during employment or can be a fixed monthly amount based on the length of the employment.
Once the amount of an employee’s retirement benefits has been determined, the company must contribute each year whatever is necessary to meet the fund’s future requirements. Because of the number of variables, defined benefit plans require the services of an actuary to calculate required contributions.
Contact Us
For more information about our Retirement Services, please call us at 1-888-293-0683 OR click here to let us know a little more about your wealth management needs and a Regions Retirement Services Professional will contact you.
Regions Morgan Keegan Trust Overview Brochure
Trust services are provided through Regions Morgan Keegan Trust, a trade name for the Trust Division of Regions Bank.
