Types & Uses of Retirement Plans for Business/Group/Employees*

Simplified Employee Pension (SEP) Plan: A SEP is a group of individual IRA’s established for employees to which the employer makes tax deductible contributions in each eligible employee’s account. No contribution is required from year to year.

Simple IRA Plan: SIMPLE stands for Savings Incentive Match Plan for Employees. SIMPLE plans can be in either an IRA or a 401k format. Generally, an Employer ‘match’ is required.

Traditional Profit Sharing Program: Employer contributions to the plan can be determined year to year, do not have to be made every year, profits are not required to make a contribution, and ‘vesting’ schedules and loan schedules available.

Money Purchase Plan: The employer contributes a specified percentage of the participating employee’s salary each year. Vesting and loan schedules available.

Age-Weighted or Comparability Plan: For business owners who are older and more highly paid than most of their employees and wish to allocate contributions under a formula based on both age and salary.

Defined Benefit Pension Plan: For business owners who wish to contribute enough money each year to provide a specific benefit upon retirement. This may be beneficial to older employees with a high, stable income who need a rapid accumulation of assets over a short period of time.

401(k) Plan: For employers who wish to allow employees to make pre-tax contributions through payroll deductions. No employer contributions are required. Vesting schedules and loan schedules available.

403(b) Plan: For employees of public schools, non-profit hospitals and other certain tax-exempt organizations. Also known as a Tax-Sheltered Account.

Our agency does not provide legal or tax advice. For specific legal or tax advice based on your situation, please contact your attorney of tax advisor.

Please contact us for a quote.