Business Group Plans
Types & Uses of Retirement Plans for
Business/Group/Employees*
Simplified Employee Pension (SEP) Plan: For self-employed people and
small business owners who wish to make tax-deductible contributions of
up to $40,000 or 25% of their income, whichever is less, and that of
their eligible employees.
Simple IRA Plan: For firms of 100 or
fewer employees to establish an employee savings program for pre-tax
contributions of up to $7,000 per year.
Profit Sharing Plan (Keogh** Plan):
For business owners who wish to make tax-deductible contributions of up
to 15% of each participant's pay, and have vesting and loan schedules
not available with a SEP.
Money Purchase Pension Plan (Keogh** Pension
Plan): For business owners with predictable incomes who wish
to make pre-determined tax-deductible contributions of up to 25% of each
Participant's pay.
Age-Weighted or Comparability Plan:
For business owners who are older and more highly paid than most of
their employees and wish to allocate contributions under a formula based
on both age and salary.
Defined Benefit Pension Plan: For
business owners who wish to contribute enough money each year to provide
a specific benefit upon retirement. This may be beneficial to older
employees with a high, stable income who need a rapid accumulation of
assets over a short period of time.
401(k) Plan: For employers who wish
to allow employees to make pre-tax contributions through payroll
deductions of up to $11,000 per year or 25% of their pay, whichever is
less.
Safe Harbor or DASH 401(k) Plan: For
business owners who wish to give their employees the advantages of a
401(k) plan, while maximizing the amount they can put away for
themselves.
403(b) Plan: For employees of public
schools, non-profit hospitals and other certain tax-exempt
organizations. Also known as a Tax-Sheltered Account.
Our agency does not provide legal or tax advice. For specific legal or
tax advice based on your situation, please contact your attorney of tax
advisor.
** The term "Keogh" or "HR-10" describes any type of retirement plan
established by an unincorporated business - whether it be a profit
sharing, money purchase or defined benefit plan.
Brier Payne Meade, Topeka – (785) 233-1717
Brier Payne Meade, Kansas City – (913) 402-9576
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