15_1023 CF Small Retirement Brochure_FINAL.indd 1 8/18/16 10:54 AM

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1 15_1023 CF Small Retirement Brochure_FINAL.indd 1 8/18/16 10:54 AM

2 of U.S. employer firms ARE SMALL BUSINESSES. As a small business owner, you have a lot to keep track of hiring the right employees, paying taxes, running your business, making a profit. A retirement plan for your employees and yourself might not be top of mind. You are not alone. Only 24%* of small businesses in the U.S. had a 401(k) in place for their workers in That s up from 10% in Those are the businesses with a competitive edge in this increasingly competitive job market. You can attract and retain top talent just by offering a retirement plan even one that s easy and inexpensive to set up and maintain. In a lot of cases, we ll do most of the work for you. Let s sit down and discuss which retirement plan is best for your small business. We re local, so we understand your needs. We can help keep you on track and will work to get you into the most appropriate investments to give you successful outcomes. We have the financial experience you need, and we offer a wide selection of products to try to make sure you have the most cost effective plan with the best return and most tax savings possible. Already have a retirement plan in place with another financial institution? Let s review what you have and see what we can offer. If you already do your banking with us, let us** help you with the rest of your company s money matters. If not, let s discuss all the ways we can help you and your employees try to secure a better financial future. * SBA.gov, September 2012 * time.com/money/ /small-business-may-mean-small-401k/ ** Through our broker dealer CUSO Financial Services, L.P. 3 15_1023 CF Small Retirement Brochure_FINAL.indd 2-3 8/18/16 10:54 AM

3 LET US HELP FIND THE RIGHT PLAN FOR YOU Want to offer a retirement plan for your employees but just don t know where to begin? We ve taken the guesswork out of selecting the right plan. You ll feel confident knowing you are making the right choice for your employees and their future. Are you interested in contributing to your employees acounts? Do you have employees? Both employer and employee will make contributions Only employer will contribute to employee accounts Which is more important to you? Which is more important to you? Which is more important to you? Higher contribution limits Lower plan costs Higher contribution limits Lower plan costs Higher contribution limits Lower plan costs Plan design flexibility* Easier administration Plan design flexibility* Easier administration Loan option Easier administration 401(K) SIMPLE IRA SEP IRA 401(K) PAYROLL DEDUCTION IRA SOLO 401(K) SEP IRA See page 6 See page 8 See page 11 See page 6 See page 12 See page 7 See page 11 4 * Optional features, loans, vesting, etc. 5 15_1023 CF Small Retirement Brochure_FINAL.indd 4-5 8/18/16 10:54 AM

4 RETIREMENT PLANS 401(K) RETIREMENT PLANS SOLO 401(K) Do you have more than 20 employees? Offering a 401(k) helps a business attract and retain top talent in a highly competitive job market. You have a lot of control and flexibility over what your business contributes, who is eligible to participate, and when participation begins. Both you and your employees can enjoy the tax benefits of a 401(k) plan. Do you own your own business but have no employees other than yourself? You might consider a Solo 401(k) also known as a One Participant 401(k). This plan is designed for employers and their spouses and have the same rules and requirements as any other 401(k) plan. Contributions can be made both as the employer and the employee. Contributions and earnings are not taxed until distributed Employer has control over eligibility and contribution flexibility ELIGIBLE EMPLOYER Any non-goverment employer Employee Employer (Match or optional contribution) Employee contribution is 100% vested immediately. Employer contribution may be subject to plan vesting schedule. EMPLOYEE MAXIMUM $18,000 or lesser of $53,000, or 100% of compensation, subject to nondiscrimination testing EMPLOYER MAXIMUM Lesser of $53,000 or 100% of compensation, subject to nondiscrimination testing CATCH-UP CONTRIBUTIONS* (AGE 50 OR OVER) $6,000 Save more for retirement, even with a low salary Get both an employee salary deferral AND an employer profit-sharing contribution Flexible ELIGIBLE EMPLOYER Sole owner with no employees Self-employed individual with no employees 100% vested immediately EMPLOYEE MAXIMUM Up to 100% of compensation (up to $18,000) EMPLOYER MAXIMUM 25% of compensation as defined by the plan. Total contributions to a participant s account, not counting catch-up contributions, for those age 50 and over cannot exceed $53,000 CATCH-UP CONTRIBUTIONS* (AGE 50 OR OVER) $6, * Information valid for years 2015 & See for annual updates. * Information valid for years 2015 & See for annual updates. 15_1023 CF Small Retirement Brochure_FINAL.indd 6-7 8/18/16 10:54 AM

5 RETIREMENT PLANS SIMPLE IRA Do you have 100 or fewer employees who earned $5,000 or more during the preceeding calendar year? If you want something a little less complicated than a 401(k), consider a Simple IRA plan for your workforce. Your company s contributions are a tax-deductible business expense, and your employees can make pre-tax contributions with tax-deferred growth potential. Reduces employee taxes Easy and inexpensive to set up and maintain No annual filing requirement ELIGIBLE EMPLOYER Employers with employees who earned $5,000 or more during the preceeding calender year Employee Employer (Matching or 2% of compensation) 100% vested immediately EMPLOYEE MAXIMUM $12,500 EMPLOYER MAXIMUM 100% match of employee contribution of first 3% of compensation (can be reduced to as low as 1% in any 2 of 5 years), or contribute 2% of each eligible employee s compensation CATCH-UP CONTRIBUTIONS* (AGE 50 OR OVER) $3,000 U.S. households owned employer-sponsored IRAs like SEP and SIMPLE IRAs. 8 * Information valid for years 2015 & See for annual updates. * ICI.org, May _1023 CF Small Retirement Brochure_FINAL.indd 8-9 8/18/16 10:54 AM

6 RETIREMENT PLANS SEP IRA What s the difference between a Simple IRA and a SEP IRA? For one thing, with a SEP IRA, only the employer makes contributions. If you re self-employed, a sole proprietor, a business owner, or in a partnership, this might be the right choice for you. Your contribution can vary from year to year (0% to 25% of compensation), but the percentage must be the same for every employee. Easy and inexpensive to set up and maintain. Generally, no annual filing requirement. Business pays no taxes on investment earnings Employer has flexibility in annual contributions ELIGABLE EMPLOYER Any employer Employer 100% vested immediately EMPLOYER MAXIMUM Easy and inexpensive to set up a nd maintain. Generally, no annual filing requirement. Business pays no taxes on investment earnings Employer has flexibility in annual contributions * ICI.org, May 2013 * Information valid for years 2015 & See for annual updates _1023 CF Small Retirement Brochure_FINAL.indd /18/16 10:54 AM

7 RETIREMENT PLANS PAYROLL DEDUCTION IRA If you want to offer a retirement plan in which only the employees contribute, then a Payroll Deduction IRA might be right for your company. This no muss, no fuss plan puts all the control in the employees hands and is one of the simplest ways to save for retirement. Easy to set up and maintain No annual filing requirement No employer contributions No minimum number of employees required ELIGIBLE EMPLOYER Any employer Employee 100% vested immediately EMPLOYEE MAXIMUM $5,500 CATCH-UP CONTRIBUTIONS* (AGE 50 OR OVER) $1, * Information valid for years 2015 & See for annual updates. * Sharebuilder401K.com, November 13, _1023 CF Small Retirement Brochure_FINAL.indd /18/16 10:54 AM

8 MEET OUR TEAM CARL SCHLUTZ CFS Investment Program Manager c e cschlutz@trfcu.org JOSH STULTZ CFS Investment Representative c e jstultz@trfcu.org DAVID JURAS, ChFC CFS Investment Representative c e djuras@trfcu.org ALI HALILOVIC CFS Investment Representative c e ahalilovic@trfcu.org SUZANNE HECK CFS Investment Assistant c e sheck@trfcu.org JENNIE CLARKE CFS Investment Coordinator c ext e jclarke@trfcu.org 15 15_1023 CF Small Retirement Brochure_FINAL.indd /18/16 10:54 AM

9 3Rivers is dedicated to sound financial planning with our members. With specialized products and services for every stage of life, our experienced team of registered representatives and advisors brings your big picture into focus. We believe in working with you to analyze your current financial condition, helping you set goals, and creating an understandable plan to best address your needs. 3riversfcu.org Connect with us on social media to learn more Non-deposit investment products and services are offered through CUSO Financial Services, L.P. ( CFS ), a registered broker-dealer (Member FINRA/ SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. The credit union has contracted with CFS to make non-deposit investment products and services available to credit union members. ClearFuture Financial is a trade name for the investment & insurance products available at 3Rivers Federal Credit Union. 15_1023 CF Small Retirement Brochure_FINAL.indd 16 8/18/16 10:54 AM