BUSINESS RETIREMENT PLAN NEEDS
A business retirement plan is one of the best tax shelters and
a competitive hiring tool.
A well-designed and managed retirement plan is one of the most
sought-after employee benefits and one that will help you attract
and retain qualified people. At the same time, a retirement plan
can provide you, as the employer, with tax benefits that enable
you to make the most of your business's assets.
Choosing the right plan for your business depends on many factors:
your goals for establishing a plan, the size of the annual plan
contributions you can comfortably commit to, and a wide range of
specific issues related to your company.
Pensionalysis, Incorporated can accommodate the unique
goals and needs of your business by offering a broad range of innovative
retirement plans and services. This page provides an overview of
the types of plans available. Specific design options and consultation
can be obtained by sending E-Mail to firstname.lastname@example.org
COMMON PLAN FEATURES
Eligibility Requirements Qualified Plans generally must allow employees
to become Participants after completing one year of service. For
more information on eligibility and participation. Click
Integration Retirement Plans are allowed, to a
limited extent, to skew contributions or benefits in favor of the
more highly compensated
employees. The IRS allows this because Social Security Benefits
are only based on compensation below the Taxable Wage Base. For
more information about Integration.
Participant Loans Participants can be allowed
to borrow for any purpose under all the above plans. There are
various rules regarding
interest rates, repayment schedules and loan limits. Some loan
Vesting Vesting is used as a tool to retain employees.
Generally, an employee must become fully vested after seven years
Depending on benefits and eligibility requirements, the period
an employee must vest may be shortened. http://www.pensionalysis.com/vesting.html
Types of Plans
Retirement Plans are generally categorized as defined contribution
plans or defined benefit plans.
Under defined contribution plans, contributions are generally made
as a percentage of compensation. Participants' retirement benefits
are based on the amount of the contributions and the investment
performance of the assets.
Under defined benefit plans, contributions are based on actuarial
factors, compensation, age and years of service for each employee.
Benefits are generally defined to be a percentage of compensation
to be provided for life after retirement age is reached.
Profit-Sharing (PS) Plans are well suited for businesses with uncertain
or fluctuating profits. In addition to the flexibility in deciding
the amounts of the contributions, a Profit-Sharing Plan can include
options such as service requirements, vesting schedules and plan
loans that are not available under SEPs. Contributions may range
from 0% to 25% of eligible employees compensation. The maximum
contribution a participationary reach each year is $44,000. Generally,
a Trustee is named to direct the investment of the Plan
though participants can be allowed
to invest their own account.
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Pensionalysis, Inc. All