Retirement Plans

Bill -2

Bill Waller

Compliance Manager
“It’s all about personal attention and learning what is going on within each client’s organization. We are always working to ensure that each client’s plan meets their current needs, not just what they needed years ago when we first created the plan.”

A qualified plan must meet a certain set of requirements in the Internal Revenue Code such as minimum participation, vesting and funding requirements. In return, the IRS provides significant tax advantages to encourage businesses to establish retirement plans including:

  • Employer contributions to the plan are tax deductible.
  • Earnings on investments accumulate tax-deferred which allows contributions and earnings to compound at a faster rate.
  • Employees are not taxed on the contributions and earnings until they receive the funds.
  • Employees may make pretax contributions to certain types of plans.
  • Ongoing plan expenses are tax deductible.

In addition, retirement plans are fast becoming a key part of a successful business infrastructure. Here are some advantages of sponsoring a qualified retirement plan:

  • Attract and retain experienced employees in a very competitive job market
  • Help employees save for their future since Social Security retirement benefits alone will be an inadequate source to support a reasonable lifestyle for most retirees
  • Plan assets are protected from creditors