Retirement Plans

Plan Types

The right plan involves close analysis of the current and future needs of an organization, the personal retirement savings goals of the owner(s), and the overall cost and benefit of sponsoring a qualified retirement plan.

Each business and it's employees have specific needs that cannot be met with an off-the-shelf, prepackaged plan. Retirement plans are far too valuable and complicated to run smoothly without consistent attention to detail and experienced, human help.

401(k) Plans
Employees can save with pre-tax contributions through salary reduction agreements, up to $16,500 for 2009 ($22,000 if over age 50). More

Profit Sharing Plans
Employers can make flexible and discretionary contributions to eligible employees, up to 25% of total payroll. More

Defined Benefit Plans
Large deductible contributions can be made to employees closer to retirement age (typically owners). Contribution limits are typically much higher than under 401(k) and Profit Sharing Plans. More

403(b) Plans
Sponsored by tax-exempt organizations with similar features to a 401(k) plan. Employees can save up to $16,500 for 2009 ($22,000 if over age 50). More

Prevailing Wage Plans (Davis-Bacon Plans)
Geared towards non-union companies required to pay a prevailing wage for employees working on government projects. Can have both a 401(k) and Profit Sharing component. More

Employee Stock Ownership Plans (ESOPs)
A qualified plan designed to invest primarily in employer securities. More

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