Retirement Plans for Businesses

One of the main advantages of a retirement plan is that it promotes regular savings for the future.  Having a good plan can also help you to attract and retain quality employees, and enhance productivity. In addition, a retirement plan can provide significant tax benefits for both the employer and employee.

From your perspective as an employer, the challenge is finding the right plan. There are many different types of retirement plans to choose from, and each has unique features. It is important that you select and implement the plan that best suits your needs, the needs of your business, and the needs of your employees.

For Self-Employed / Sole Proprietorship / Partnership / LLC

If you are a self-employed individual or a small business owner, you know that your needs differ from those of large employers.  Accordingly, there are several types of retirement plans that are specifically designed for your situation. We work with the following types of plans:

• Simplified employee pension (SEP) plan

• SIMPLE IRA plan

• Individual 401(k) plan

For Corporations

If you are involved with a corporation, your business may have multiple employees. One of your goals in choosing a retirement plan may be to balance their needs against the needs of your business. There are many types of plans that may enable you to achieve this goal.  We work with the following:

• Simplified employee pension (SEP) plan

• SIMPLE IRA plan

• 401(k) plan

• Profit-sharing plan

• Money purchase pension plan

• Thrift/savings plan

• Defined benefit plan

• Cash balance plan

• Employee stock ownership plan (ESOP)

Nonqualified deferred compensation plans

You might also consider setting up a nonqualified deferred compensation plan. Compared to qualified plans, these plans are relatively flexible in that they need not satisfy stringent requirements. You and your employees may also receive more benefits under a nonqualified plan, since there are no limits on employer contributions. However, the main disadvantages of nonqualified plans are (a) they are typically not as beneficial from a tax standpoint, (b) they are generally available only to a select group of employees, and (c) the assets are not protected in the event of the employer's bankruptcy. For this reason qualified plans usually appeal to the largest number of employers and employees.

Caution: If you are an owner and wish to be included under the plan, a nonqualified deferred compensation plan will be suitable only if your business is a regular or C corporation.