- Defined Contribution & Defined Benefit Plans
- Loans Services & Hardship Withdrawals
- Online Access to Account Information
- IRS Form 5500 preparation
- New Comparability Plans
- Quarterly & Annual Statements
- Top Heavy & ADP/ACP Testing
- Compliance Consultation
- Trust Documents, Adoption Agreements, & Summary Plan Descriptions
Types of Plans:
Defined Contribution Plans: 401(k) & Profit Sharing Plans
A 401(k) plan allows participants to make either Traditional (pre-tax) deferrals or Roth (post-tax) deferrals into their retirement accounts. Even though the Traditional 401(k) has been around for quite some time, recent legislation has allowed this plan to be more flexible than before. In contrast a Profit Sharing Plan is one of the most flexible qualified retirement plans. Contributions are discretionary: you can increase, lower, or eliminate contributions as your profits dictate from year to year. Profit sharing plans can be integrated with Social Security or based on a defined grouping of employees, which is an advantage that can provide business owners and key employees with additional benefits.
Defined Benefit and Cash Balance Plans
Defined Benefit and Cash Balance Plans maintain hypothetical accounts for each active participant that is credited with a contribution credit each year as well as a defined interest credit. Participants usually do not contribute to the accounts. The basic benefit formula is almost always expressed in terms of a lump sum and most benefits are paid in the form of a lump sum rather than an annuity. There are stark differences between Defined Benefit and Cash Balance Plans and they do not necessarily work for every company. Contact us today to speak with a plan design expert for a custom designed solution.
Contact SBSF today to find out how we can work side by side with you!