These days, almost all companies use 401(k) plans as their primary tool for encouraging employees to save for retirement. These tax-advantaged plans are an important employee benefit, but sponsoring one involves significant regulatory and administrative requirements, along with fiduciary responsibility (and potential liability). Many of our commercial banking clients partner with Enterprise Trust to deal with these burdens. We can help with plan design and administration, provide employee communication and education, and ensure that your plan has an appropriately diversified menu of investment options (including risk-based and target-date funds that can simplify investment decisions for participants in the plan) – all with complete cost transparency. By leveraging the expertise and investment management resources of Enterprise Trust, companies can ease the fiduciary and regulatory obligations of plan sponsorship.
Defined Benefit Plans
Companies offering defined benefit plans can also benefit from Enterprise Trust’s investment and administrative expertise. Our professionals can advise on the development of appropriate investment policies and implement investment strategies designed to support funding obligations.
These plans typically provide an opportunity for executives to defer compensation to a future time, usually after retirement. For tax reasons, plan design is critical. Although there are a variety of ways to design and fund these plans, insurance is a popular option. Professionals at Enterprise Trust can advise on and facilitate the design, funding, and administration of nonqualified plans.
NOTE: Investment products offered through Enterprise Bank & Trust are:
- Not insured by the FDIC;
- Not deposits or other obligations of Enterprise Bank & Trust and are not guaranteed by Enterprise Bank & Trust or any of it’s affiliates; and,
- Subject to investment risks, including possible loss of the principal invested.