Qualified Plans

The IRS has created a number of retirement savings vehicles for employers of all sizes to use to save for their and their employees’ retirement.

A qualified plan must meet a number of Internal Revenue Code requirements under Section 401(a) such as minimum coverage, benefits, participation, and vesting to name a few.

In return, the IRS provides the following tax advantages when businesses set up plans:

• Deductions for current contributions
• Tax deferred earnings on investments until distribution
• Employees may have opportunity to make pretax or after-tax contribution
• Deduction for ongoing plan expenses

In addition to tax benefits, qualified retirement plans have the following advantages:

• Attract talented employees with a great benefit package
• Retain valued employees by rewarding their service
• Disciplined savings tool to help employees meet retirement needs
• Significant savings accumulation in a short period of time
• Protection from creditors