Retirement Plans: Helps Your Employees Prepare for a Secure Financial Future

Attract and retain top talent by providing a retirement plan that empowers your team to build long-term financial security. Retirement plans are one of the most valued employee benefits, and choosing the right one creates trust while helping your people save with confidence.

4.9/5 from 1,400+ clients who understand their benefits
Get My Quote with Retirement PlansTalk to a Coverage Expert
No sales pressure, just education

When Retirement Plans Make the Difference

Real scenarios that show exactly when and how retirement plans protect you and your team for the long haul.

Starting a Simple IRA for a Small Team

Rachel’s marketing agency had three employees. With professional guidance, she set up a Simple IRA plan. The retirement plan gave employees tax-advantaged savings with an automatic employer match, helping each person save an extra $2,500 per year. Instead of worrying about turnover, Rachel’s team reported higher job satisfaction and her business retained key talent.

401(k) Plan Boosts Recruitment

When Lee’s software company struggled to attract experienced developers, he added a 401(k) plan with immediate vesting. Applicants appreciated the benefit—within months, the company filled three senior roles. The team now enjoys automatic payroll contributions up to $19,500 per year. The company avoided expensive recruiter fees and built a loyal workforce.

Protecting Retirement Savings During Economic Downturn

During unexpected market turbulence, Maria’s local firm’s retirement plan included personalized education sessions and robust investment options. Employees received clear guidance and made informed choices, preserving more of their retirement savings. Instead of panic withdrawals, the team felt secure and avoided long-term financial setbacks thanks to their well-structured benefit plan.

Everything You Need to Know About Retirement Plans

The complete picture: what's covered, what's not, and how to decide if your business and employees need it.

Retirement Plans (Plain English)

Retirement plans are employee benefit programs that help your team save money for their future. When your business offers a retirement plan, employees can set aside part of their paycheck (sometimes with employer matching) into a special account that grows over time. The key thing to understand is that it protects your team’s financial future while making your company more attractive as an employer.

The Fine Print

Your retirement plan options—like a 401(k) or Simple IRA—come with important details. Vesting periods determine when employee savings become fully theirs. Contribution limits (for 2024, $22,500 for 401(k)s, $15,500 for Simple IRAs, with catch-up options) set how much can be saved annually. Administrative fees may apply. Not all plans match funds, and some have eligibility waiting periods. Tax advantages depend on plan type and structure. Always review the plan summary for details and ask your advisor about employer obligations and fiduciary duties.

Retirement Plans vs. Other Benefits

Retirement plans are NOT the same as health insurance or life insurance. Retirement plans help employees save money for the future, while health insurance covers medical expenses and life insurance provides financial protection to loved ones. Your benefits package should balance all three to fully support your team.

Who Needs Retirement Plans?

You typically need this coverage if:

  • You are a business owner seeking to attract and retain top talent
  • You want to offer valued, tax-advantaged benefits to employees

You might skip this coverage if:

  • You have no employees except yourself and no plans to grow

Contribution Limits & Plan Options

Contribution limits vary by plan. For 401(k)s, the employee limit is $22,500 annually (plus catch-up for those 50+). Simple IRAs have a $15,500 limit. Employer matching and vesting schedules may differ. Plan options include: traditional 401(k), Safe Harbor 401(k), Simple IRA, SEP IRA. You can also choose automatic enrollment and Roth options for greater flexibility.

What's NOT Covered by Retirement Plans

This coverage does NOT cover:

  • Immediate cash needs: Funds are typically intended for retirement age and may have penalties for early withdrawal
  • Market losses: Investments can fluctuate, and no plan guarantees profits

For life and disability risks, you'd need separate insurance products.

Ready to Add Retirement Plan Protection?

Now that you understand retirement plans, see how affordable protection can be with personalized quotes from 26+ top carriers.

Get My Quote with Retirement PlansTalk to a Coverage Expert

Your Local Coverage Experts

1,400+ clients trust our expertise to explain coverage clearly and find the right protection for their specific needs.

4.9/5 Stars

Google Reviews from real customers, just like you

97% Retention

Customers stay with us year over year over year

Independent

We work for you, not insurance companies

Local

Fort Collins owned & operated since 1992

How Retirement Plans Actually Work

Understanding exactly what happens when you set up a retirement plan, make contributions, and receive benefits.

Claims Process

What you Pay

Timeline

The Claims Process (Accessing Retirement Benefits)

  1. Enrollment: Employees sign up and choose investments during open enrollment or when hired, receiving educational support as needed.
  2. Ongoing Contributions: Regular payroll deductions plus employer matching (where offered) grow savings over time. Plans provide ongoing statements and support.
  3. Requesting a Distribution: When an employee retires or meets eligibility, they submit a distribution request, which is quickly processed according to plan rules.
  4. Receiving Funds: Employees receive retirement distributions by direct deposit or check, minus applicable taxes or early withdrawal penalties if not yet retirement age.

What You Pay

Employers choose their contribution level—typically a percentage match or fixed amount. Administrative fees usually range from 0.5% to 2% of plan assets. Employees decide how much to contribute (up to IRS limits) from each paycheck. Higher contributions mean more savings, but both employer and employee see tax benefits. Compare your options for the optimal balance.

Timeline

Setting up a new plan takes two to four weeks, depending on plan complexity. Employee enrollments can be completed in a few days. Most plans distribute funds the same week a qualifying claim is submitted. Prompt enrollment and ongoing education help maximize benefits and avoid administrative snags.

The Real Cost of Going Without Retirement Plans

Understanding the real financial impact: what you pay to offer retirement benefits versus what you risk without them.

Simple IRA for a Small Business

Annual Coverage Cost: $750/year in employer contributions

Scenario: A business offers a 3% match to three employees in a Simple IRA.

Without Coverage: Struggles to attract experienced candidates; high turnover costs $5,000 per hire.

With Coverage: $750/year (plus administrative fees and employee contributions)

Protection Value: Savings of $4,250+ per employee in reduced turnover costs and improved recruitment

401(k) with Immediate Vesting

Annual Coverage Cost: $2,500/year in employer match for a mid-sized team

Scenario: A business matches 4% of salaries for 10 employees.

Without Coverage: Lower employee satisfaction and lost productivity costing $10,000 annually

With Coverage: $2,500/year (+ plan fees; offset by tax benefits)

Protection Value: More than $7,000/year in avoided disruption and increased loyalty

Safe Harbor 401(k) to Avoid IRS Testing

Annual Coverage Cost: $3,800/year in employer match

Scenario: A 15-person business implements a Safe Harbor 401(k), ensuring all employees can fully participate.

Without Coverage: Fails IRS testing, risking penalties and refunds

With Coverage: $3,800/year (+ administrative costs)

Protection Value: Avoidance of IRS penalties ($5,000+) and regulatory headaches

The Economic Reality

For most businesses, offering a retirement plan costs $60-$200 per month—less than a weekly team lunch. One incident of high turnover or an IRS penalty could cost $5,000–$10,000, which can take years to recover from financially. The math is simple: A well-structured retirement plan pays for itself by improving recruitment, retention, and regulatory compliance.

4 Costly Retirement Plan Mistakes to Avoid

Learn from others' mistakes—avoid these common errors that can leave your business and employees exposed.

Missing Out on Employer Contributions

Some employees forget to enroll, missing out on matching funds. They lose valuable employer money every year. Instead, encourage automatic enrollment or set reminders before deadlines. Just a 3% match can add thousands to retirement savings.

Choosing the Wrong Plan Type

Business owners sometimes pick a plan that doesn’t match their company’s size or growth. This can lead to unnecessary administrative burden or missed tax advantages. Instead, review your options and get expert advice before implementing a plan.

Ignoring Vesting Schedules

Employees might leave before fully vested, losing part of their employer contributions. Misunderstanding vesting rules means employees don’t get the full benefit. Instead, educate staff about vesting when they enroll and provide regular reminders.

Overlooking Administrative Fees

Some businesses don’t consider plan fees, which eat into employee returns. High or hidden fees can reduce retirement savings significantly. Instead, compare provider options transparently and choose cost-effective plans with clear fee disclosures.

Employee Benefits Frequently Asked Questions.

Find answers to your most pressing insurance questions right here.

How does paid time off (PTO) accrual work?

PTO accrual is typically earned based on the number of hours worked and your length of service, with policies varying widely among Colorado and Utah employers.

How does insurance work?

Insurance works by sharing financial risk among many people. For employee benefits in Colorado and Utah, your business pays premiums so your team is protected against unexpected medical expenses and other covered events.

What is a qualifying life event?

A qualifying life event—like marriage, birth, or job loss—lets you change your employee benefits outside of open enrollment. Colorado and Utah employers usually require notification within 30 to 60 days to take advantage.

How do employer matching contributions work in 401(k)s?

Employers in Colorado and Utah typically match employee 401(k) contributions up to 3–6% of your salary—offering valuable, tax-advantaged retirement savings. Not contributing enough to get the full match means missing out on free money from your employer.

How do vision insurance benefits work?

Vision insurance helps cover routine eye exams and provides allowances for glasses or contacts, with set copays for additional upgrades. Plans vary, so reviewing allowed benefits and provider networks is key to maximizing your coverage in Colorado and Utah.

What is guaranteed issue in life insurance?

Guaranteed issue in life insurance lets you secure coverage during employer open enrollment without medical questions or exams. This is especially valuable for Colorado and Utah employees with health concerns who might otherwise face coverage obstacles.

How does open enrollment work?

Open enrollment is a set time each year when Colorado and Utah employees can choose or adjust health and other benefits for the coming year. Changes outside this window are only allowed after major life events like marriage or birth.

What are flexible spending accounts (FSAs)?

Flexible Spending Accounts (FSAs) let you set aside pre-tax income for healthcare or dependent care expenses, but most funds must be used within the plan year. FSAs can significantly reduce your taxable income for Colorado and Utah residents with out-of-pocket costs.

Are part-time employees eligible for benefits?

Part-time employee benefit eligibility depends on your employer’s plan, hours worked, and the size of your organization. In Colorado and Utah, the ACA typically requires benefits for those working 30+ hours weekly at large employers, but many small businesses set their own policies—so always ask HR about your specific options.

How do employee assistance programs (EAPs) work?

Employee Assistance Programs (EAPs) provide free, confidential counseling and support for personal or work challenges, offered by many employers across Colorado and Utah. These services help you handle stress, mental health issues, and life events—without your employer ever knowing the details.

Explore Your Coverage Options

Discover the best insurance coverage tailored to your individual needs and protect what matters most.

Let's Explore Today With A QuoteWant to Talk To A Professional? Click to Call