Whether you are a sole proprietor, partnership or a corporation, there are several types of qualified retirement plans that can meet your needs. A retirement plan can serve many purposes, from tax sheltering income to attracting and retaining employees.
Here is general information about the most popular types of retirement programs. Our consultants will help you choose the plan that is best for you.
Qualified Retirement Plans
A qualified plan must meet a certain set of requirements set forth in the Internal Revenue Code such as minimum coverage, participation, vesting and funding requirements. In return, the IRS provides tax advantages to encourage businesses to establish retirement plans including:
+ Tax advantages
- 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 the following advantages:
+ Advantages of offering a retirement plan
- Attract experienced employees in a very competitive job market: Retirement plans have become a key part of the total compensation package.
- Retain and motivate good employees: You don't want to lose them to your competitors because of the qualified plans they are offering.
- Help employees save for their future since Social Security retirement benefits alone will be an inadequate source to support a reasonable lifestyle for most retirees.
- Qualified plan assets are protected from creditors of the employer and employee.
Defined Contribution Plans
DEFINED Benefit Plans
“We have used Planned Retirement Consultants & Administrators for 20 years now. Their work is impeccable, and they are always there for us. Our plan was picked for an audit by the IRS and we came through without owing any money or being cited for any problems at all. Go with PRCA.”
