QUALIFIED RETIREMENT OPTIONS

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1. Qualified Retirement Options

Owning a business gives you access to tax-favored retirement strategies that most individuals don’t have. Through a qualified plan, you can shift business dollars toward your own retirement while helping employees save for theirs.

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Key Benefits:

• Business contributions are tax-deductible.

• Employee contributions grow tax-deferred until withdrawn.

• Plans can help you retain and reward employees.

• Assets are protected from creditors.

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There are two main types of qualified plans:

• Defined Contribution Plans: You decide how much to contribute each year; your benefit depends on growth and earnings.

• Defined Benefit Plans: You define the retirement benefit you’ll receive, and contribution amounts adjust to meet that promise.

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2. Profit-Sharing Plans

These allow flexibility in annual contributions — even years with none — while giving you the option to favor key employees or owners.

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Common Profit-Sharing Designs:

• Traditional: Equal percentage contributions for all participants.

• Integrated: Higher earners receive a larger share of contributions.

• Age-Weighted: Rewards older or long-term employees nearing retirement.

• Cross-Tested: Lets you group employees strategically to maximize owner contributions.

 

3. 401(k) Plans

• Traditional 401(k): Flexible contributions with no required employer match.

• Safe Harbor 401(k): Requires a match but allows full deferral limits and easy compliance.

• Solo 401(k): Designed for business owners without employees — combines personal deferrals and employer profit-sharing for maximum tax advantages.

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4. Defined Benefit Plans

• Traditional Defined Benefit: Uses actuarial calculations to guarantee a set pension benefit at retirement.

• 412(e)(3) Fully Insured Plan: Funded through guaranteed-value annuities and/or life insurance, offering higher deductible contributions and predictable outcomes.

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5. Speak to a Licensed Insurance Agent

Our team specializes in custom employer-sponsored plans that balance tax efficiency, employee retention, and owner benefits. We’ll walk you through each structure and show exactly how it can fit your business. ​Speak to an Agent – To see the full list of carriers we work with, click here.

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