Helping you recruit, reward, and retain the best people.

Does your organization have a strategy for recruiting, retaining, and rewarding top talent?

Your company’s executive and management teams include some of the most important hires your organization can make. Their leadership and expertise are highly-valued skills that are paramount to your company’s success – which makes it critical your organization has a strategy for attracting and keeping top talent. 

Offering all of your employees a competitive and affordable benefits package is important, but your key employees have unique needs and goals that may require additional savings tools beyond a traditional retirement plan. Some things for you to consider after taking a closer look at your organization include: 

  • Are you concerned about losing key employees to your competitors? 
  • Are your key employees’ performance metrics and incentives properly aligned with your organization’s goals? 
  • Do you have executives and key talent you want to reward? 
  • Are you doing enough to help key employees bridge the retirement gap created by 401(k) plan testing and contribution limits? 
  • Does your benefits package encourage the best talent to join your organization as it grows? 

Rewarding your key employees is important. But, as their salary increases, the percentage of their total compensation that they can defer into a qualified retirement plan declines.

An employee making a $155,000 salary who contributes $23,000 into a 401(k) plan is saving 15 percent of compensation for retirement.


An employee with a $450,000 salary who also contributes $23,000 is only saving five percent of compensation for retirement.

There are additional limitations that can compound this issue.

Limitations on your company

Nondiscrimination requirements
Every year qualified plans must pass mandated tests to confirm highly compensated employees (HCEs)

Top-heavy testing
Remediation may be required when total assets attributed to HCEs exceed the IRS

Minimum coverage rules
Generally, at least 70 percent of all non-highly compensated employees must participate in the qualified plan per IRC Section 410(b) 1986, as revised

Limitations on your key employees

Contribution limits
Limited to contributing $23,000 annually, as of 20241 (irs.gov)

Withdrawal penalty tax
Early withdrawals are subject to an extra 10 percent tax on gains

Required minimum distributions
Cash must be withdrawn annually after reaching 73 years of age

1Annual contribution limit is indexed for inflation

  • You can target and reward your key employees 

  • You can design this tax efficiently 

  • You can do this in a cost-efficient manner 

  • You can do this without an administrative burden