Benefits of a Qualified Retirement Plan

Benefits of a Qualified Retirement Plan
Benefits of a Qualified Retirement Plan for the Employer/Plan Sponsor
  • Employer contributions are tax deductible.
  • Assets in the plan grow tax-free.
  • A retirement plan can attract and retain good employees.
  • The plan can be structured to accumulate significant benefits for selected employees.
  • Businesses may receive tax credits and other incentives for starting a plan. These tax credits help small businesses offset the costs of setting up and administering a new qualified employer plan and educating employees about it. More information can be found here.
Benefits of a Qualified Retirement Plan for the Employee/Plan Participant
  • Tax on employee contributions is deferred until distributed.
  • Investment gains in the plan are not taxed until distributed.
  • Contributions can usually be made through payroll deductions.
  • Provides a way to accumulate substantial retirement income.
  • Plan benefits are protected under ERISA from creditors.
  • Some 401(k) savers may also be eligible for an additional tax credit, simply for saving.

 


 

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Pinnacle Plan Design is a third-party administrator (TPA) for employer-sponsored qualified retirement plans. We specialize in retirement plan design, administration and actuarial consulting for 401(k)/profit-sharing plans, defined benefit plans, cash balance plans, and 403(b) plans. Pinnacle Plan Design proudly serves businesses nationwide.

 

 

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