Retirement Plan Design & Administration Services

TYPES OF PLANS

  • 401(k) - A defined contribution plan that permits employees to have a portion of their salary deducted and contributed to a retirement account. Federal and state taxes on the employee contributions and investment earnings are deferred until the participant receives a distribution from the plan (typically at retirement). Employers may also make contributions to a participant's account.
  • Solo 401(k) - A 401(k) for self-employed individuals with no employees.
  • Profit Sharing - Company-sponsored plan funded only by company contributions. Company contributions are typically discretionary and may be determined by a fixed formula related to the employer's profits.
  • SIMPLE IRA/SIMPLE 401(k) - A type of defined contribution plan for employers with 100 or fewer employees in which the employer matches 100% of employee deferrals up to 3% of compensation or provides non-elective contributions up to 2% of compensation for all eligible employees. These contributions are immediately 100% vested, and they are the only employer contribution to the plan. SIMPLE plans may be structured as individual retirement accounts (IRAs) or as 401(k) plans.
  • Simplified Employee Pension (SEP) - A defined contribution plan in which employers have the discretion to make contributions directly into employees' IRA accounts.
  • New Comparability Plan - A profit sharing plan in which the employees are divided into groups, with each group receiving a contribution that is a different percentage of compensation. The simplest type of grouping is to have the owners in one group and all other employees in another group. Some employers have each employee in their own group thus providing maximum flexibility.
  • 403(b) or Tax Sheltered Annuity (TSA) - Provides a tax shelter for 501(c)(3) tax exempt employers (which include public schools). Employees qualifying for a TSA may defer taxes on contributions to certain annuity contracts or custodial accounts.
  • Non-Qualified Deferred Compensation Plan – Agreements by an employer to make payments to employees at a future date for services currently rendered.  This type of plan allows an employer to benefit only certain employees if they wish.  There is no contribution limit or testing requirement and all contributions grow tax deferred until the money is withdrawn.