Qualified Retirement Plans

A retirement plan can serve many purposes, from tax sheltering income to attracting and retaining employees. Whether you are a sole proprietor, partnership or a corporation, there are several types of qualified retirement plans to meet your needs.

  • We can help you choose the plan that is best for your business.
  • We can design a plan for your specific business and its needs
  • We can administer the plan for you and your employees
  • We can make sure the plan is in full compliance with all legal and accounting requirements.

Two Types of Plans, Several Options

Employers may choose between two basic types of retirement plans: defined contribution and defined benefit. Both may be sponsored to maximize benefits. We can help you choose the right plan for your company.

Quick Introduction to 401(k) Plans (PDF)

Plan Requirements

A qualified plan must meet a certain set of requirements set forth in the Internal Revenue Code. These include minimum coverage, minimum participation, vesting and funding requirements.

Plan Benefits

The IRS provides tax advantages to encourage businesses to establish retirement plans. These include:

  • Employer contributions to the plan are tax deductible.
  • Earnings on investments accumulate tax-deferred, allowing contributions and earnings to compound at a faster rate.
  • Employees are not taxed on the contributions and earnings until they receive the funds.
  • Employees may make pretax contributions to certain types of plans.
  • Ongoing plan expenses are tax deductible.

In addition, sponsoring a qualified retirement plan offers you ways to attract and keep employees.

  • Retirement plans have become a key part of total compensation packages, and they can be used to attract experienced employees in very competitive job markets.
  • Retirement plans can help you retain key employees, reduce turnover and motivate good employees.
  • Since Social Security retirement benefits alone may not be adequate to support a reasonable lifestyle for most retirees, retirement plans help employees save for their future.
  • Retirement plan assets are protected from creditors.

For more information about retirement plan design and administration, contact us today.