Qualified Retirement Plans

• 401(k) Plans

  A 401(k) Plan is a qualified retirement plan in which an employer permits an employee to defer receipt of part of his or her compensation by contributing that part to his or her account in the 401(k) Plan.

• Defined Benefit Plans

  Generally, a Defined Benefit Plan allows for much bigger deductions for employees who are getting a late start on their retirement planning (or who have lost their plan assets in a divorce or other lawsuit).

• Roth 401(k) Plans

  In 2006 a new retirement account was signed into law. It is a component of a “regular” 401(k) Plan; however, the funding of a “Roth” 401(k) Plan is with AFTER-TAX dollars.

• Profit Sharing Plans

  The bread and butter income tax deferral tool for many small business owners is the profit sharing plan. A Profit Sharing Plan is a qualified retirement plan with annual contribution limits.

• 401(h) Plans

  It’s a medical expense account under Code Section 401(h). The plan pays for costs associated with sickness, accident, hospitalization, and medical expenses of retired employees (EEs) (and their spouses and dependents).