Retirement Plan Services
Our staff of Employee Benefit Managers has experience and expertise in all facets of corporate 401(k) retirement plan design and implementation. We have the flexibility and sophistication to accommodate the specific needs of your retirement plan. WNB Trust provides discretionary trustee services for the plan, provides a wide array of investment options to plan participants, and continually reviews and monitors performance.
We can offer participants sound investment direction and ongoing communication, as well as participant education services through group and individual meetings. Participants have access to an internet-based daily-valued record keeping system as well as toll free phone access. A trust officer is personally available to answer questions as well. We feel that it is important to provide information to participants, as an informed participant is more likely to view the retirement plan as a benefit.
WNB can oversee the plan’s compliance with IRS and DOL regulations and prepare IRS Form 5500 filings with schedules. We can provide annual IRS compliance testing and reporting, review eligibility, verify vesting, process participant distributions, and provide participant statements with very little effort required from your company. We handle more tasks associated with our clients’ retirement plans than most other companies who offer retirement plan services.
Our history and tradition as a trusted fiduciary ensures that your plan will receive the service and care it deserves. Call an Employee Benefits Manager at our Winona office at 507-454-9218.
Defined Contribution Plan
A Defined Contribution Plan provides an individual account for each participant. Some examples include 401(k) Plans, 403(b) Plans, and Profit Sharing Plans. The benefits are based on the amount contributed, plus or minus income, gains, expenses and losses allocated to the individual’s account. In most cases, the employee has control over the investments in which the funds are to be allocated; however, WNB Trust will determine the investment funds available for selection in the Plan. Defined Contribution Plans are subject to IRS limits as to how much can be contributed by the employee and by the employer. At retirement, the individual’s account is used to provide retirement benefits.
Defined Benefit Plan
A Defined Benefit Plan promises the participant a specific monthly benefit at retirement and may state this in an exact dollar amount. The benefit is determined by a formula that can incorporate the employee’s pay, years of employment, age at retirement, and other factors. A participant is generally not required to make contributions or to make investment decisions. A Defined Benefit Plan is sometimes referred to as a fully funded pension plan.
Employee Stock Ownership Plan (ESOP)
An Employee Stock Ownership Plan (ESOP) is a retirement plan in which the company contributes its stock to the plan for the benefit of the company’s employees. ESOPs are most commonly used to provide a market for the shares of departing owners, to motivate and reward employees, or to take advantage of incentives to borrow money for acquiring new assets in pretax dollars. In almost every case, ESOPs are a contribution to the employee, not an employee purchase. Company contributions to the plan are tax-deductible, within certain limits.