Types of Qualified Retirement Plans

The plans must meet requirements of the Internal Revenue Code like minimum coverage, participation, and funding. In exchange, your business receives tax advantages, including:

• Employer contributions are tax deductible
• Earnings on investments accumulate tax-deferred, allowing 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

Additional benefits include:

• Attract, motivate, and retain top-talent employees in a very competitive job market
• Help employees save for their future since Social Security benefits alone will likely be inadequate for most retirees
• Qualified plan assets are protected from creditors of the employer and employee