Businesses and Institutions

Retirement Plans

Retirement plans serve various purposes and come in different forms—all of which exist for specific reasons. Below is some general information to help you understand the differences, which is why we recommend a specific type of plan depending on the circumstances of your company.

Defined Benefit Plans

Years ago, most companies offered defined benefit plans (or “pensions” as many refer to them) to their employees. The employers would put aside money each year to provide employees with a specific amount of income upon retirement.

The amount provided depends on several factors, such as the length of service and the amount of earnings during employment. Participant distributions are typically expressed as a fixed percentage of salary, a flat monthly amount, or a formula based on years of service. View a cheat sheet that illustrates the features of a defined benefit plan.

From an employer's perspective, these can be very expensive plans to utilize, which is why in today's world, most employers offer a form of defined contribution plan. A hybrid version of the two would be a cash balance defined benefit plan. View a cheat sheet to view a cheat sheet that illustrates the features of a cash balance defined benefit plan.

Defined Contribution Plans

Defined contribution plans are very common today, as they allow employees to participate in contributing toward their retirement accounts. Click on the links below to view easy-to-read tables that describe the features of each plan.

Traditional 401(k)

Individual 401(k)

Plans for non-profit organizations – 403(b)

Roth 401(k)/403(b)

Plans for governmental and affiliated agencies – 457

Profit sharing

Money purchase


Employer-Sponsored IRAs

Other types of retirement plans include employer-sponsored IRAs. These should not be confused with a traditional or Roth IRA that individuals may open independently.

Employer-sponsored IRAs entail less administrative requirements, making them less expensive to administer, and the IRS does not impose annual filing requirements for these types of plans. Click on the links below to view easy-to-read tables that describe the features of each plan.

Payroll deduction




Insurance for Businesses

For new and established businesses in all types of industries, there are several ways to provide protection and tax savings for both the employer and employees. Sorting through the various options can be an overwhelming experience. As your advisors, we help take the guess work out of it.

We will help you obtain for the best policies to suit your company's needs, make sure you understand how your policies benefit the business owners and the employees, and simplify the application process. It is very important to remember that Fortegy Financial is an independent firm—we have no ties to any insurance companies. This means that we will choose policies that are the best fit for your company's needs.

Group Health Insurance

Medical, dental, and vision contracts are available for businesses of all sizes. The primary types of health plans include traditional indemnity, health maintenance organizations (HMOs), preferred provider organizations (PPOs), point of service (POS), and managed care. Understanding the differences in these plans is important because the costs and features can be quite different. We will look at various insurance companies and make recommendations based on the number of full- and part-time employees, in some cases the health profile of the employees, and the physical location of the business.

Group Disability Insurance (Short- and Long-Term)

Income replacement, also known as disability insurance, is available to groups as short- and long-term policies. These contracts cover the policyholders in the event that they suffer an injury or illness that prevents them from working by providing monetary support to pay for necessities. Fortegy Financial advisors are experienced in individual contracts as well as employer-sponsored group planning. Income replacement contracts are also a key factor in funding buy-sell agreements for businesses.

Key Person Coverage/Buy-Sell Funding

Key person coverage is a term used to describe insurance contracts that are put in place to compensate a business in the event that it suffers a loss (disability or death) of a “key” employee. Not only may such contracts be utilized to provide money when the business suffers a loss, but they can also be part of an executive's bonus within their overall compensation package.

For executive compensation packages, split dollar life insurance arrangements may be appropriate. This type of insurance contract entails splitting the death benefit, cash surrender values, and premium payments between an employer and employee (or between an individual and a trust), which may help maintain and reward key employees.

Another option is for a business to offer nonqualified deferred compensation. This is an informal vehicle where a corporation owns the insurance policy, pays the premiums and receives the benefits. In turn, it uses the benefits to fulfill (in whole or in part) a contractual promise to pay retirement benefits to a key person (or survivor benefits to the deceased key person's beneficiaries).

Life and/or disability insurance contracts may also help fund buy-sell agreements for businesses' succession and continuity plans. Fortegy Financial recommends that an attorney draft the agreements, such as a cross-purchase, entity purchase, or hybrid format. The insurance contract would then be written to fund the outcome.