Choosing a Qualified Retirement Plan

There are several types of plans to choose from. An employer’s decision should be based on the individual goals of the owner, and the goals for their company. The following questions can help an owner identify plans that may best suit their needs. Compensation Consultants, Inc. can discuss the details of how each plan can work in each unique situation.

Ready for assistance? Download our Retirement Plan Questionnaire and fax it to us. Or, contact one of our Account Managers to discuss details.

·        Do you want contributions to vary according to company profits and be made tax-deferred to eligible employees payable upon retirement?
Consider a Profit Sharing Plan

·        Do you want your employees to be able to defer some of their current income so they can save in a tax-deferred account?
Consider a 401(k) Plan

·        Do you want offer both company contributions based on profits and the ability for employees to contribute current tax-deferred income?
Consider a Profit Sharing 401(k) Plan

·        Do you want to make contributions independent of company profits with a guaranteed contribution level?
Consider a Money Purchase Pension Plan

·        Do you want to make contributions with the goal of participants achieving a specific “target” amount of money at retirement independent of company profits?
Consider a Target-Benefit Plan or a Defined-Benefit Plan

A plan established and maintained by an employer to provide discretionary contributions on a tax-deferred basis. The plan must provide a definite predetermined formula for allocating contributions to the plan participants. A participant’s retirement benefits are based on the amount in his or her individual account at retirement.

A type of defined contribution plan where the employer’s contributions are determined by a specific formula, usually a percentage of pay. Employer contributions are mandatory.