Plan Design

Most employers consider a retirement program to be primarily an employee perk. However, for smaller businesses, a properly designed plan also may be an effective tax-planning tool for the owner. In cases like these, an owner may be allocated as much as 90% or more of the company contributions.

A well-designed plan provides a business owner many advantages, including:

• Greatly accelerated retirement savings

  A Defined Benefit Plan may allow an owner to accumulate as much as $2.6 million in 10 years.

• Significantly larger owner contributions

  In many cases, an age-sensitive Tiered Profit Sharing, 401(k), or Defined Benefit Plan can skew as much as 90% or more of company contributions to the owners. This means that the owner often nets more in the current year than he/she would taking the same amount as taxable income.

• Tax-deferred investment growth

  Once the owner retires or the plan is terminated, the owner may roll his assets into an IRA account with no tax implications at that time. The account then would continue to grow tax-deferred.

• Valuable employee benefit

  Few small employers offer a retirement program, so a plan can serve as an important tool in attracting new employees. A vesting schedule can help retain them.

Our well-trained staff of retirement plan specialists and consultants offers the broadest range of plan design options for Profit Sharing, 401(k), and Defined Benefit Plans, so there is no conflict of interest between the services we offer and what type of plan best meets the needs of our clients.