Our designs make the best use of Profit Sharing and 401(k) Plans, Defined Benefit Plans or a combination of the two to achieve the financial objectives for the business owner.
We seek to provide the Ideal Retirement Plan for employers. By identifying who the employer wants to benefit and why, we will recommend the proper plan.
DEFINED CONTRIBUTION PLANS:
A plan that provides an individual account for each participant and to which their retirement benefit is based soley on the value of that account.
- 401(k) - A 401(k) Plan allows employees to defer pre-tax dollars for their own retirement savings. The plan may also provide an employer matching contribution as well as an employer discretionary contribution.
- Profit Sharing - A Profit Sharing Plan allows an employer to make a discretionary contribution on an annual basis. Employer contributions are tax deductible and range from 0% to 25% of covered payroll.
- Cross-Tested - A Cross-Tested Plan allows varying contribution levels among groups of employees. The contributions for a Cross-Tested Plan are based on the employee age, compensation, and employee group.
DEFINED BENEFIT PLANS:
A plan that provides participants a retirement benefit that is determined by a formula stated in the plan.
- Defined Benefit - A Defined Benefit Pension Plan provides higher tax-deductible contributions than defined contribution plans. Provided information is given timely, contributions can be adjusted on an annual basis to be commensurate with the employer's economics.
- Cash Balance - A Cash Balance Pension Plan expresses the participant's accrued benefit as a hypothetical account balance or a single-sum amount. The plan behaves as a glorified profit sharing plan in which participants recieve an annual contribution to their account and a stated rate of return.
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