Plan Types
A Cash Balance Plan is a type of Pension Plan that is very similar to a traditional Defined Benefit Plan. Pension Plans offer the largest annual tax deductible contributions and savings for business owners in that, depending on an owner’s age and compensation, annual deductible contributions for an owner may be as high as $300,000 allowing up to $3.4 million in tax deferred savings in as little as 10 years.
Like a Cash Balance Plan, a traditional Defined Benefit Plan is a type of Pension Plan. Pension Plans offer the largest annual tax deductible contributions and savings for business owners in that, depending on an owner’s age and compensation, annual deductible contributions for an owner may be as high as $300,000 allowing up to $3.4 million in tax deferred savings in as little as 10 years.
A 401(k) Plan is one of the most flexible qualified retirement plans available. The plan allows for employee and employer contributions that are tax deferred or tax deductible.
A Profit Sharing plan is usually the most flexible and cost-effective plan option available to a small employer. Company contributions are at the discretion of the employer, and are not required in any particular year. There are no employee contributions allowed.