401 (k)
A 401(k) plan is an employer sponsored qualified plan that allows for employee pre-tax contributions to be invested for future use. These contributions grow tax-deferred until they are withdrawn from the account. Withdrawals are then taxed as ordinary income. To encourage participation, most employers match a portion of employees’ contribution.
403(b)/457 Plans
These plans are for non-profit organizations, schools, colleges, universities, or hospitals. These plans allow for employees and/or employers to set aside money for retirement.
SEP IRA’s
Clients don’t have to work for a large company to benefit from a pension plan. A SEP IRA may be right for them. SEP IRA stands for Simplified Pension IRA. It’s a tax deferred retirement plan for small business owners, where the employer makes deductible contributions to an employee’s IRA account.
Simple IRA
The Simple IRA is for business owners with 100 or fewer employees who would like their workers to share the responsibility for their own retirement savings, but who don’t want the complexity, cost, and administration of a 401(k). Such businesses might include consumer establishments, such as stores and restaurants, professional firms, and small companies. “SIMPLE” stands for Savings Incentive Match Plan for Employees. The payroll deduction feature permits an employee to make pre-tax salary deferral contributions in addition to the employer’s contribution.
Profit Sharing
A profit-sharing plan is a defined contribution plan in which your employer has discretion to determine when and how much the company pays into the plan. The amount allocated to each individual account is usually based on the salary level of the participant.
Safe Harbor
A Safe Harbor 401(k) Plan is a specific type of 401(k) that encourages employee participation and that provides employers more leniency in setting up plans, without concerns about discrimination in favor of highly compensated employees.
Deferred Compensation
A deferred compensation plan is an arrangement whereby an employee or owner defers some portion of their current income until a specified future date. Wages earned in one period are actually paid at a later date.