An employer–sponsored plan is a type of benefit plan offered to employees at no or relatively low cost. These plans, such as a 401(k) or HSA, cover an array of services including retirement savings and healthcare.
Keeping this in consideration, what type of retirement plan is a 401 K?
A 401(k) Plan is a defined contribution plan that is a cash or deferred arrangement. Employees can elect to defer receiving a portion of their salary which is instead contributed on their behalf, before taxes, to the 401(k) plan. Sometimes the employer may match these contributions.
Considering this, what is a government sponsored retirement plan?
A Government–Sponsored Retirement Arrangement (GSRA) is a Canadian retirement plan for individuals who are not employees of a local, provincial or federal government body, but who are paid for their services from public funds.
What are the 3 types of employer-sponsored retirement plans?
Common Types Of Retirement Plans Offered By Employers
- 401(k) Plan. This is the most common type of employer-sponsored retirement plan. …
- Roth 401(k) Plan. This type of plan offers the same benefits as a traditional Roth IRA with the same employee contribution limits as a traditional 401(k) plan. …
- 403(b) Plan. …
- SIMPLE Plan.
Who can sponsor a retirement plan?
A retirement plan sponsor is a company or employer that offers a retirement plan as a benefit to employees. As such, if you own a business or company that offers a 401(k) plan, for example, your business qualifies as a retirement plan sponsor.