Types Of Plans

Types Of Plans We Create & Manage

  • A 401(k) is available to the individual through his/her company and helps reduce taxable income since contributions are made through the individual’s paycheck before taxes. Pension Parameters can set up an employer’s matching contribution for your employees that will help them compound money more quickly. Employees may access account information daily via the Pension Parameters web site 24/7: www.pensionparameters.com.
  • Profit-Sharing including New Comparability Plans. Ideal for small, closely held firms, new comparability plans permit owners and other key employees to receive the maximum allowable contribution. For midsized companies, different percentages may be contributed to employees divided into three, four or more groups based on job classification, salary level, age, seniority or any combination of similar criteria.
  •  Defined Benefit Plan. A small business owner may consider offering this plan type which promises an employee a specified benefit at retirement. The amount of the benefit is often based on a set percentage of pay multiplied by the number of years the employee worked for the employer offering the plan. Employer contributions must be sufficient to fund the promised benefit. Defined benefit plans are less prevalent than they were in the past. However, a defined benefit plan may be ideal for the right situation, and it should be considered.
  • Other Plan Types – such as 403(b) and Cash Balance Plans are not as familiar to many businesses, but could be ideal. We will work with you to consider which program may be right for you.

Savings Options to Maximize Tax Benefits

  • Flexible Spending Plans: Known as FSAs, these are available to any company with two or more employees. An FSA allows an employee to set aside a portion of  earnings to pay for qualified expenses, most commonly for medical expenses but often for dependent care or other expenses. Money deducted from an employee’s pay into an FSA is not subject to payroll taxes, resulting in a substantial payroll tax savings.
  • Traditional Rollover IRA- a savings option for business owners. A reinvestment of the proceeds from a taxable distribution from a qualified retirement plan goes into a traditional Rollover IRA, designed for individuals.
  • Roth Rollover IRA. The Roth IRA holder usually will not owe any tax when the withdrawal is made.  Depending on tax legislation, different years are more advantageous to rollover to a Roth, and we inform you when the timing is right to achieve your strategies.