Specialized Options

Types of Retirement Plans

Our Retirement Plans section provides an in-depth look into each retirement plan. This page covers the following option:

Defined Contribution Plans

Defined Contribution Plans define the contribution a participant receives under the plan. The employer contributions are allocated to individual accounts maintained for each participant within the plan. Each participant bears the investment risk in this plan.

Defined Contribution Plans

Traditional 401(k) Plans

A 401(k) plan which enables employees to make contributions to the plan before taxes or after-tax (Roth)

Why is it used?

Employers who want to offer a retirement plan that allows employees to contribute part of their salary into the plan. Most of the time it is paired with an Employer matching contribution.

 

Defined Contribution Plans

Profit Sharing Plans

Profit Sharing Plans enable an employer to make discretionary contributions in a way that is tailored to the individual organization’s objectives.

Why is it used?

Generally, when an Employer wants to provide a level contribution percentage to each eligible employee.

Defined Contribution Plans

403(b) Plan

403(b) plans are sponsored by not-for-profit and educational institutions and operate in an almost identical manner to 401(k) plans. They have some unique features that make them very attractive to qualifying organizations.

Why is it used?

If you are a qualifying institution and the plan is properly structured you are automatically exempt from the non-discrimination testing associated with employee contributions.

 

Defined Contribution Plans

401(k) Safe Harbor Plans

A 401(k) Safe Harbor Plan is similar to the traditional 401(k) plan. The employer is required to make a fully vested matching or employer safe harbor contribution.

Why is it used?

For companies that want to avoid failing non-discrimination testing. A failure may require a refund of salary deferrals to the firm’s most valuable employees. Companies want to avoid disappointing these employees.

Defined Contribution Plans

Cross-tested / New Comparability

A Cross-Tested/New Comparability Plan is a type of profit sharing plan which allows the employer to maximize the contribution to selected employees while having the plan remain in compliance with IRS regulations.

Why is it used?

Often paired with a 401(k) feature this allocation methodology provides the best opportunity to maximize contributions to the management team. It further provides cost effective contributions to the staff.

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Would you like to have a conversation? Would you like to discover more?
Here’s a few ways to get in touch with us.

Info@ConciergeRetirementServices.com
7 Rye Ridge Plaza #404
Rye Brook, NY 10573
+1 (914) 251-0099

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