Insperity Retirement Services are employer-sponsored retirement plans and administrative solutions provided through Insperity’s HR portfolio, designed to help organizations offer competitive retirement benefits and streamline compliance and plan management for employees. This page explains Insperity’s retirement offerings, typical eligibility rules, contribution and vesting structures, common tax treatments, and guidance on official administration and regulatory resources.
Who This Applies To & Eligibility
Insperity Retirement Services are typically available to employees of client companies that utilize Insperity as their Professional Employer Organization (PEO) or HR outsourcing partner.
Eligibility to participate usually depends on employment status (full-time or part-time), length of service, and sometimes minimum age requirements; these criteria vary by employer and specific plan design.
Owners and business principals whose firms adopt Insperity-administered plans are also eligible in many cases, subject to plan rules and IRS nondiscrimination requirements.
Eligibility and participation may differ for part-time, seasonal, or leased workers, as outlined in each employer’s Summary Plan Description (SPD).
Participants should consult their specific plan documentation or the Insperity client HR portal for current eligibility requirements and enrollment periods, as employer-adopted features may change annually.
Key Facts (At-a-Glance)
Item
Details
Plan/Program Type
Defined contribution plan (most commonly 401(k)), administered by Insperity on behalf of client employers.
Contribution Limits
Follows IRS annual 401(k) deferral limits (sample/illustrative: $23,000 employee limit for 2025, plus possible catch-up; verify latest thresholds on official IRS contribution limits).
Employer Match
Varies by employer; common formulas include 50% match of first 6% of pay deferred; matching may be discretionary or fixed (“sample/illustrative”).
Tax Treatment
Traditional (pre-tax contributions lower taxable income); some plans offer Roth (after-tax; qualified withdrawals tax-free). Taxation varies according to plan design and participant elections.
Vesting
Employee deferrals are always 100% vested. Employer contributions may follow immediate or graded cliff schedules (e.g., 100% after 3 years of service, or 20% per year over 5 years) based on sponsoring employer plan document.
Withdrawals
Normally allowed at age 59½ or upon separation from service. Early withdrawals (before eligible age/event) typically incur penalties unless under hardship rules. Loans often permitted; hardship distributions possible per plan terms and IRS guidance.
RMDs
Required minimum distributions for tax-qualified plans begin by April 1 following the year participant reaches sample/illustrative age 73, unless still working (verify current IRS RMD age thresholds).
Fees
Administration and investment expenses vary; generally detailed in annual fee disclosures available through Insperity’s official plan communications. Range “sample/illustrative”: 0.2%–1.5% of assets/year, depending on funds and services selected.
Portability
Rollovers to IRAs or another employer’s eligible plan typically permitted after termination; in-service rollovers may be limited. Details governed by summary plan descriptions and IRS rollover rules.
Loans
Loan provisions available in many plans; IRS generally caps loans at $50,000 or 50% of vested balance, whichever is less. Repayment typically via payroll deduction while employed; default can trigger taxes and penalties.
Beneficiaries
Participants may designate primary and contingent beneficiaries; spousal consent may be required for non-spouse primary designations. Distribution options vary at death.
Contributions, Limits & Taxation
Employee contributions occur via payroll deductions, up to the annual IRS limit (consult current-year caps; e.g., “sample/illustrative”: $23,000 for 2025 for participants under 50).
If a plan allows, participants aged 50+ may add a catch-up contribution on top of the elective deferral limit (e.g., “sample/illustrative”: $7,500, subject to annual COLA adjustment).
Employer matching formulas range from no match to 100% match on first 3–6% of compensation; actual structure is set by each employer when adopting the Insperity plan.
Traditional contributions reduce taxable income now, with taxes owed at withdrawal; Roth contributions do not reduce current-year taxes, but allow for tax-free withdrawals if certain IRS conditions are met (holding period and qualified distribution events).
Some plans may permit after-tax contributions beyond regular limits, but these are subject to nondiscrimination and annual testing requirements; confirm with Insperity plan documentation and annual communications.
IRS contribution limits, tax deduction eligibility, and nondiscrimination test outcomes can vary year by year; always reference the latest IRS guidance on official 401(k) limits.
Investments & Fees
Insperity Retirement Services plans typically offer a lineup of mutual funds, index funds, lifecycle (target-date) funds, and often stable value or money market alternatives.
Participants select investments for their own accounts from the menu specified by their employer’s plan. Automatic default investments may apply if no election is made.
Fund-level fees (expense ratios) are set by the underlying mutual fund provider; administration fees and advisory fees are set by Insperity and detailed in ERISA-required annual disclosures.
Total fees (fund + administration) are shown on annual participant statements and fee notices; always review the DOL’s official participant fee disclosures for the most up-to-date information.
Additional plan features may impact expenses, such as professional managed account options or financial planning tools; details found in official plan summaries or the Insperity participant portal.
Withdrawals, RMDs & Penalties
Standard eligibility for distributions is at retirement (age 59½+), or after ending employment. Withdrawals before this age are subject to a 10% IRS early withdrawal penalty plus income tax, unless an IRS hardship exception applies.
Hardship withdrawals are permitted under narrow IRS criteria (such as unreimbursed medical expenses, first home purchase, educational costs). These withdrawals incur taxes and may not be repayable to the plan.
Loans, if permitted, avoid withdrawal penalties but must be repaid per plan terms. Defaulted loans are treated as taxable distributions and may trigger penalties.
Required minimum distributions (RMDs) must begin by April 1 following the year a participant reaches the applicable IRS age (sample/illustrative: 73 for those turning 73 in 2025), unless still actively employed; participants should verify current RMD thresholds on IRS official RMD guidance.
Failure to take RMDs results in significant IRS penalties; always follow official communication from Insperity/plan sponsor for annual distribution requirements and deadlines.
Rollovers to another qualified plan or IRA may be tax-free if properly executed; cash-outs may result in immediate taxes and penalties. Always reference IRS instructions for latest rollover and distribution tax rules.
Examples & Scenarios
Scenario
Contribution
Tax Treatment
Withdrawal Timing
Notes
Employee under 50 defers $10,000, receives $2,500 employer match
$10,000 employee; $2,500 employer
Traditional: reduces current taxable income; taxed at ordinary rates at withdrawal
At age 59½ or separation from service
Access delayed unless hardship, subject to penalties if withdrawn early
Employee over 50 uses catch-up, saving $25,000 total in plan year
Should be by April 1 following 73rd birthday (illustrative)
Penalty reduced if corrected promptly; see IRS RMD guidance
Alternatives & Complementary Options
Traditional IRA or Roth IRA as individual accounts (outside employer plans); lower contribution limits, but more personal investment flexibility.
SEP IRA or SIMPLE IRA for small and self-employed businesses.
State-sponsored auto-IRA or retirement programs in some jurisdictions as fallback where employer plan is unavailable.
Annuities may supplement retirement income but involve higher fees, different tax treatment, and less flexibility; careful review and comparison encouraged.
Comparisons
Side-by-Side Features
Feature
Insperity Retirement Services
Traditional IRA
Roth IRA
Contribution Limit
$23,000 (employee, 2025 sample/illustrative; higher if over 50 with catch-up)
$7,000 (sample/illustrative; varies by year and age)
$7,000 (sample/illustrative; varies by year and age)
Tax Treatment
Pre-tax (Traditional) or after-tax (Roth) contributions; employer match pre-tax
Contributions may be deductible (income limits apply); taxed at withdrawal
After-tax contributions; qualified withdrawals are tax-free
Withdrawal Rules
59½+ for penalty-free; hardship/loans subject to conditions
59½+ for penalty-free; early withdrawals often penalized, with exceptions
59½+ and 5-year rule; non-qualified withdrawals pro-rated for taxes/penalties
RMD
Required at 73+ (sample/illustrative), unless still employed
Required at 73+ (sample/illustrative)
No RMDs during owner’s lifetime (as of current IRS rules)
Fees
Administrative + fund expense ratios (sample/illustrative: 0.2%–1.5% total)
Varies widely by provider; often low/no fees for passive accounts
Varies widely by provider; similar to Traditional IRA
Administration, Forms & Deadlines
Plan enrollment, changes, and regular communications are managed through the Insperity client portal, with resources also distributed by individual employers.
Official plan-related documents (Summary Plan Description, annual fee disclosures, beneficiary forms, loan applications, and distribution requests) are available via Insperity’s HR services platform and employer HR departments.
IRS and DOL forms may be required for certain actions (rollovers, hardship withdrawals); always use the most recent instructions found on the IRS Forms for retirement plans.
Enrollment and change windows typically occur during new hire onboarding, open enrollment, or qualifying life events; distribution requests, including RMDs, should be completed prior to the close of the plan year as instructed in official plan materials.
Risk Factors & Responsible Planning Notes
Investment values can fluctuate; retirement account balances are not guaranteed and may decline in market downturns.
Inflation can erode purchasing power; consider this when evaluating long-term retirement adequacy.
Longevity risk (risk of outliving savings) affects all defined contribution plans; participants should review lifetime income projections provided on statements.
Sequence-of-returns risk means the timing of withdrawals can affect retirement account longevity, especially around retirement age.
No specific investment or allocation strategy suits all; review official plan disclosures, monitor fee notices, and seek objective advice as appropriate, but no personalized recommendations are given here.
Plan features and IRS/DOL rules change; always confirm current-year details on Insperity’s official platform and government websites.
Frequently Asked Questions
How do I enroll or make changes in my Insperity retirement plan?
Log in to your employer’s Insperity HR portal or contact your HR administrator for access instructions.
Annual enrollment or change windows typically coincide with new hire onboarding, open enrollment, or eligible life events; specific timing varies by employer.
What happens if I leave my employer?
Most plans allow rollovers to an IRA or new employer plan; distributions may be requested subject to taxes and penalties.
Outstanding plan loans must usually be repaid in full; otherwise, the unpaid balance may be treated as a taxable distribution by the IRS.
Where can I find current fee and investment information?
Official annual fee disclosure, plan summary, and investment lineup are provided through Insperity’s participant portal and employer HR communications.
Insperity Retirement Services can help employers streamline 401(k) and similar plan administration while providing a competitive benefit to employees.
Employees and owners should always consult their official plan documentation, the Insperity participant portal, and IRS and DOL sites for the latest information on contribution limits, rollovers, withdrawals, and compliance rules.
Carefully review plan fees, investment options, and any employer match to maximize plan effectiveness; verify all deadlines and compliance details annually using official sources.
