Qualified Retirement Packages
Defined Contribution Retirement Plans - maximum salary deferred contribution for 2005 (indexed for inflation) is $14,000, with catch up of $4,000 additional for those over 50.
- Profit sharing is a qualified plan featuring flexible employer contribution provisions. The contribution can be purely discretionary in amount, or a formula based on based on annual profits. The maximum contribution is 25% annually.
- 401(k) is a cash or deferred arrangement where employers can contribute stock or may make contributions of up to $10,000 annually (indexed to inflation).
- Money purchase is perhaps the simplest of all plans. Employers contribute from 1% to 25% (maximum contribution is $30,000 indexed to inflation).
- Target/Age weighted plan allows higher employer contributions based on both age and salary.
Defined Benefits Contribution Plans - Formula based contribution limits can be quite high for older employees/principals.
- Retirement benefits at adequate levels can be provided for all employees regardless of age at plan entry.
- Indicated for older highly compensated employees, a defined benefit plan generally will allow the maximum amount of tax-deferred retirement plans.
- Excellent for a small professional organization when the principal(s) wants to maximize their retirement benefits.
SIMPLE Plans
- Savings Incentive Match Plans for Employees.
- For employers with fewer than 100 employees who want easy to administer plan with salary reduction and employer matching contributions.
IRA and Roth IRA - maximum salary deferred contribution for 2005 (indexed for inflation) is $10,000, with catch up of $2,000 additional for those over 50.
- Individual retirement planning
- Individual educational planning
- Estate Planning with Roth IRA