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 Employer-Sponsored Retirement Plans 101
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What is a qualified retirement plan?
A qualified retirement plan is an employer-sponsored plan that meets the qualification requirements of Internal Revenue Code 401(a).

What are the benefits of offering an employer-sponsored retirement plan?

  • For an employer, a strong retirement plan can attract and retain high-caliber employees.
  • For an employee, participation in a retirement plan can help save for retirement on a tax-deferred basis.

Types of defined contribution retirement plans
Defined contribution plans are a type of retirement plan that defines the contribution that an employer offers employees toward their retirement. Defined contribution plans can come in the form of a 401(k), profit-sharing, 403(b) or 457(b).

  • 401(k) plans – Profit sharing plans with added "cash or deferred arrangement" permitting eligible employees to contribute a portion of their salary. The following 401(k) plans may offer two types of employee contributions: traditional (pre-tax) or Roth (after-tax).

    Traditional 401(k) – Employers may contribute either matching or non-elective amounts to the plan on behalf of eligible employees. Employer contributions may be tax-deductible, and employee contributions may be excluded from current income for federal income tax purposes.

    Safe Harbor 401(k) – A traditional 401(k) that may be exempt from certain non-discrimination tests and/or top heavy rules, provided requirements are met regarding contributions, vesting and information provided to employees.

    Owner-Only 401(k) – A 401(k) plan for independent professionals and their spouses.

    SIMPLE 401(k) – A simplified version of a traditional 401(k) with no discrimination or compliance testing.

  • Profit Sharing Plan – A defined contribution plan in which the contributions are made solely by the employer.The business owner has the flexibility to contribute and deduct a percentage of an eligible participant's compensation up to a maximum each year.
  • 403(b) – A tax-deferred annuity plan for public education employees, churches and 501(c)(3) organizations; usually funded by traditional (pre-tax) or Roth (after-tax) employee contributions.
  • 457(b) – An eligible deferred compensation plan for employees of state and local governments that meets IRS Code Section 457.

Who needs a retirement plan?
In today's competitive business environment, every employer should consider establishing and maintaining a retirement plan. Ohio National specializes in qualified retirement plans for small- to mid-sized employers.

You might like to know …
Ohio National can also offer 412(i), which is a defined benefit plan that provides a specified monthly benefit for eligible retirees. An Ohio National fixed annuity or a combination of a fixed annuity contract and whole life insurance policy are used to create a 412(i) plan. In addition, a SEP or SIMPLE IRA may be set up using our individual fixed or variable annuity products. Talk to your Ohio National financial professional for more information. 

Your questions answered…

Q. Does your organization have products that will meet our needs?
Our retirement plan products include allocated and unallocated group contracts, each designed for specific needs:

  • 401(k) plans
  • Safe Harbor options
  • Profit-sharing plans (including new comparability/cross-tested)
  • Defined benefit/cash balance (investment only)
  • Db(k) (investment only)

In addition, Ohio National offers flexible plan design, 80+ investment options and a choice of bundled full-service administration or unbundled investment-only agreements with Third Party Administrators (TPAs).

Q. How do you provide plan information to employers?
We use state-of-the-art software to maintain complete records on plans. These records, which include information at the plan level and at participant levels, are used to produce reports that keep clients updated on the status of their plans. In addition, plan trustees receive an annual valuation report that includes detailed information on contribution allocation, benefit payments, earnings and loan activity. (Only available on bundled full-service administration plans.)

Q. How do you report on distributions from the plan?
For distributions paid from our retirement plan products directly to the participant or per the participant’s instructions, we prepare IRS Form 1099-R, which we mail directly to the participant and report to the IRS.

Q. Do you prepare DOL Form 5500?
We furnish the employer with E-file ready Department of Labor (DOL) Form 5500 and applicable schedules. (Only available on bundled full-service administration plans.)

Q. Can we count on you to conduct non-discrimination testing?
When you take full advantage of our administration services, our Retirement Plan Services team notifies clients as rules and regulations change to ensure all required testing is complete under the current laws. (Only available on bundled full-service administration plans.)

Ohio National also annually reviews the plan to assure compliance with IRS regulations. Non-discrimination tests include: Coverage, Top Heavy, Compensation as well as Actual Deferral Percentage (ADP) and Actual Contribution Percentage (ACP), if applicable. We furnish the employer with information and complete required IRS and Department of Labor reports. (Only available on bundled full-service administration plans.)

Talk to your Ohio National financial professional to determine which one of Ohio National's retirement plan designs may be right for your specific situation.

Group variable annuities are long-term investment vehicles designed to accumulate money on a tax-deferred basis for retirement purposes. Premature distributions may be subject to withdrawal charges or a market value adjustment. Distributions may also be subject to ordinary income tax and, if taken prior to age 59½, a 10 percent federal tax penalty may apply. Upon retirement, group annuities may pay out an income stream of a series of payments or a lump sum. If you die during the accumulation or payout phase, your beneficiary may be eligible to receive any remaining account value.

Guarantees are based upon the claims-paying ability of The Ohio National Life Insurance Company. Guarantees do not apply to the investment performance or account value of the underlying variable portfolios within group variable annuities. There is no additional tax-deferral benefit for annuities purchased in a tax-qualified plan, which is already afforded tax-deferred status. An annuity should only be purchased in a qualified plan if you value some of the other features of the annuity and are willing to incur any additional costs associated with the annuity. Product, product features and rider availability vary by state. Issuer is not licensed to conduct business in NY.

Retirement Advantage is distributed by Ohio National Equities, Inc., Member FINRA, and is sold by prospectuses, which contain more complete information including fees, withdrawal charges and other costs that may apply.

Contact your registered representative or visit to obtain current prospectuses. Please read the product and fund prospectuses carefully before you invest or send money. Investors should consider the investment objectives, strategies, risk factors, charges and expenses of the underlying variable portfolios carefully before investing. The fund prospectus contains this and other information about the underlying variable portfolios.

As with any investment, investing in variable portfolios involves risk, including possible loss of principal.

With respect to non-registered group annuities, your representative can provide you with a participant disclosure form for more complete information about the contract.


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©2017 Ohio National Financial Services, Inc.
Product Issuers: The Ohio National Life Insurance Company
and Ohio National Life Assurance Corporation
Registered Products Distributed by: Ohio National Equities, Inc.
Member FINRA
One Financial Way | Cincinnati, Ohio 45242