Employer sponsored plan

Definition

A retirement plan established by an employee for the benefit of it’s employees  and their beneficiaries.

Employer sponsored plans include the following:

1. Employer sponsored IRAs
2. Qualified plans
3. Annuity plans
4. 403(b) plans
5. Governmental plans
6. IRC § 501(c)(18) Trust
7. SEP IRAs
8. SIMPLE IRAs

Referring Cite

Applicable Code section

Additional Helpful Information

• An employer receives tax and non-tax benefits from sponsoring a retirement plan for its employees
• The different types of employer sponsored plans are subject to different types of eligibility requirements, tax reporting requirements , testing and levels of complexity.

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