Retirement Plan Types

Employees elect to place a portion of their compensation in this tax qualified retirement plan.

Maximum individual deferral limit (see retirement plan limits). Catch-up provisions (see retirement plan limits). Required ADP and ACP compliance testing.

Employees elect to place a portion of their compensation in this tax-qualified retirement plan. All contributions and plan earnings are tax deferred until withdrawn from the retirement plan.

No ADP/ACP 401(k) Compliance Testing

Required Safe Harbor Employer Contribution is satisfied in one of two ways: Non-Elective Contribution: 3% of pay for all eligible employees

Matching Contribution: Basic Match equal to 100% match of employee deferrals up to the first 3% of pay and 50% match on the next 2% of pay, or Enhanced Match equal to 100% match of employee deferrals up to 4% of pay

Contributions are generally made from the employer’s profits, either as a discretionary amount or a specified percentage, although the employer may also contribute if no profits are present.

Maximizes Contributions for Owner(s)

Employees Divided into Predefined Groups

Maximizes Benefits for Older/Higher Paid Employees

Requires an Annual Employer Contribution Maximum Annual Benefit of (see plan limits) Deduction Limit may exceed 25% of Payroll

Can generate significantly higher tax-deductible contributions than traditional Defined Contribution Retirement Plans