• Defined Contribution & Defined Benefit Plans
• New Comparability Plans
• Trust Documents, Adoption Agreements, & Summary Plan Descriptions
• Top Heavy & ADP/ACP Testing
• Loans Services & Hardship Withdrawals
• Contributions & Distributions
• IRS Form 5500 Filing
• Quarterly & Annual Statements
• Record Keeping Only
• Online Access to Account Information
Types of Plans:
Traditional 401(k)
The most common of all defined contribution plans is the traditional 401(k) which allows participants to make pre-tax deferrals into their retirement accounts. Even though the traditional 401(k) has been around the longest, recent legislation has allowed this plan to be more flexible than before.
Roth 401(k)
The Roth 401(k) became effective in the beginning of 2006 but was passed by Congress in 2001. This plan (a “cousin” of the traditional 401(k)) was created mainly to allow participants to make post-tax contributions into their retirement accounts without having to worry about being taxed on the contributed amounts of monies when they withdrawal them.
403(b)
On the other hand, there are also plans for different sectors of the market such as for tax-exempt organization 501(c)(3) such as churches, schools, and charities. If your organization is a tax-exempt organization as defined by the IRS, you are eligible to establish a 403(b) retirement plan. Similar to the traditional 401(k) in all aspects except for the tax exemption status, the 403(b) does not have any ADP/Top Heavy testing requirements to undergo.
Roth 403(b)
Similar to the Roth 401(k) tax-exempt organizations also have the choice of having their deferrals made post tax. Roth 403(b)’s in simplest terms is a 403(b) but with the Roth feature.
Cash Balance Plan
A Cash Balance Plan is a defined benefit retirement plan that guarantees the vested benefit in terms of a stated account.
Contact SBSF today to find out how we can work side by side with you!
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