Plans We Support

Objectivity & transparency

We don’t think it’s enough to simply know the ins-and-outs of all the different retirement plans available. What really counts is knowing what plan will work for which client. Our experienced staff can help you.

After we understand the goals a retirement plan must meet, we’ll review the options, make a recommendation and make sure everyone at the table is in agreement. Our team members value objectivity and transparency, which means they stay focused on the client.

Objectivity & transparency

 
 

Making the Right Choice

Profit Sharing Plans

Profit Sharing plans offer flexibility, giving the employer the ability to decide the amount, if any, to contribute to the plan each year. For tax deduction reasons, a sponsor’s plan cannot exceed 25 percent of the total compensation of all eligible employees. In most cases, the contribution is determined based on compensation, meaning higher paid employees benefit more than others. If you’re looking to reward your most valued employees, a Profit Sharing plan may be an effective tool.

New Comparability Plans

New Comparability plans, also known as cross-tested plans, are a type of Profit Sharing plan. This option gives an employer the ability to offer to certain employees a much higher contribution allocation than they could with a plan that requires standard nondiscrimination testing. New comparability plans are most often used by small businesses wanting to maximize contributions to owners and highly paid employees while minimizing the contributions for other employees.

Age-Weighted Plans

Age-Weighted plans, another type of Profit Sharing plan, use an allocation formula that takes into account each employee’s age and compensation. In this plan, employees who are closer to retirement age may receive significantly larger contributions compared with employees who are younger.

401(k) Plans

401(k) plans are the most common retirement plans in use today. Designed to serve for-profit businesses, they are often used to help attract and retain good employees. Each participating employee can elect to make pre-tax or Roth (post-tax) contributions through payroll deductions. And most employers, wanting to provide added benefit and encourage employee participation, can match a predetermined amount of an employee’s contribution. While most 401(k) plans include both employee and the employer contributions, the employer is not required to make contributions. In a 401(k) plan, employers can make profit sharing contributions in addition to, or instead of, matching contributions.

401(k) Safe Harbor Plans

401(k) Safe Harbor plans are allowed to eliminate nondiscrimination testing by including specific, mandatory employer contributions to non-owners. This, in turn, enables all highly compensated employees – typically the business owners and senior management – to defer the maximum annual amount allowed regardless of the amount deferred by non-highly compensated employees. This plan is often used to help an employer reward and retain the employees it considers most valuable to the organization.

Roth 401(k) Plans

Roth 401(k) plans combine many of the benefits of a traditional 401(k) and a Roth IRA. For tax purposes, employees participating in this type of plan can choose to have a portion, or the full amount, of their retirement plan contribution treated in the same way as Roth IRA contributions. In a traditional 401(k), all contributions are considered by the IRS as pre-tax; distributions after retirement are subject to income tax. In a Roth 401(k), contributions are made after-tax. This increases the participant’s immediate tax burden, but the principal grows tax-free and distributions are tax-free if certain qualifications are met. Employers often can match some portion of the amount deferred by each employee, just as they can with a traditional 401(k).

403(b) Plans

403(b) plans are designed to serve nonprofit businesses in much the same way that 401(k) plans serve for-profit businesses. Many of our nonprofit clients find that a 403(b) plan helps them attract and retain good employees. As in a 401(k), each participating employee can elect to make pre-tax or Roth contributions through payroll deductions. And most employers, wanting to provide an added benefit and encourage employee participation, can match a predetermined amount of an employee’s contribution. While most 403(b) plans do include employee and the employer contributions, the employer is not required to make contributions.

Profit Sharing Plans

Profit Sharing plans offer flexibility, giving the employer the ability to decide the amount, if any, to contribute to the plan each year. For tax deduction reasons, a sponsor’s plan cannot exceed 25 percent of the total compensation of all eligible employees. In most cases, the contribution is determined based on compensation, meaning higher paid employees benefit more than others. If you’re looking to reward your most valued employees, a Profit Sharing plan may be an effective tool.

New Comparability Plans

New Comparability plans, also known as cross-tested plans, are a type of Profit Sharing plan. This option gives an employer the ability to offer to certain employees a much higher contribution allocation than they could with a plan that requires standard nondiscrimination testing. New comparability plans are most often used by small businesses wanting to maximize contributions to owners and highly paid employees while minimizing the contributions for other employees.

Age-Weighted Plans

Age-Weighted plans, another type of Profit Sharing plan, use an allocation formula that takes into account each employee’s age and compensation. In this plan, employees who are closer to retirement age may receive significantly larger contributions compared with employees who are younger.

401(k) Plans

401(k) plans are the most common retirement plans in use today. Designed to serve for-profit businesses, they are often used to help attract and retain good employees. Each participating employee can elect to make pre-tax or Roth (post-tax) contributions through payroll deductions. And most employers, wanting to provide added benefit and encourage employee participation, can match a predetermined amount of an employee’s contribution. While most 401(k) plans include both employee and the employer contributions, the employer is not required to make contributions. In a 401(k) plan, employers can make profit sharing contributions in addition to, or instead of, matching contributions.

401(k) Safe Harbor Plans

401(k) Safe Harbor plans are allowed to eliminate nondiscrimination testing by including specific, mandatory employer contributions to non-owners. This, in turn, enables all highly compensated employees – typically the business owners and senior management – to defer the maximum annual amount allowed regardless of the amount deferred by non-highly compensated employees. This plan is often used to help an employer reward and retain the employees it considers most valuable to the organization.

Roth 401(k) Plans

Roth 401(k) plans combine many of the benefits of a traditional 401(k) and a Roth IRA. For tax purposes, employees participating in this type of plan can choose to have a portion, or the full amount, of their retirement plan contribution treated in the same way as Roth IRA contributions. In a traditional 401(k), all contributions are considered by the IRS as pre-tax; distributions after retirement are subject to income tax. In a Roth 401(k), contributions are made after-tax. This increases the participant’s immediate tax burden, but the principal grows tax-free and distributions are tax-free if certain qualifications are met. Employers often can match some portion of the amount deferred by each employee, just as they can with a traditional 401(k).

403(b) Plans

403(b) plans are designed to serve nonprofit businesses in much the same way that 401(k) plans serve for-profit businesses. Many of our nonprofit clients find that a 403(b) plan helps them attract and retain good employees. As in a 401(k), each participating employee can elect to make pre-tax or Roth contributions through payroll deductions. And most employers, wanting to provide an added benefit and encourage employee participation, can match a predetermined amount of an employee’s contribution. While most 403(b) plans do include employee and the employer contributions, the employer is not required to make contributions.

 
 
 

Call us with questions. We’ll answer.