Other Qualified Retirement Plans to Ask Your Financial Planner About

Executive Planning Group Helps You Weigh Your Options

When most of us think of the terms ‘retirement benefits’ or ‘retirement plan,’ we envision a pension from a big corporation or a 401k. Few of us may realize that various other options could fit a company’s situation better than a traditional pension plan or a 401k. Determining what you should offer your employees, or yourself if you are self-employed, takes some assistance from your Jackson, MS financial planner.

Work with the team at Executive Planning Group and learn which retirement vehicles you should use to reach your financial goals. We help you identify the appropriate solutions and recommend the best vehicles. Not only do we support businesses with retirement options, but we also work with individuals.

6 Types of Qualified Retirement Plans to Consider for Your Business

You don’t have to limit your choice to only two options for building a retirement plan. Here are six types you should consider when you speak to your financial planner:

  1. Defined Benefit Plans: This option is an employer-sponsored retirement plan. Your employee’s benefits are computed using a formula that looks at many different factors, including the number of years of employment and salary. The company manages the plan’s investments and risks, and employees cannot withdraw until they reach a specific age.
  2. Defined Contribution Plans: Employees can contribute to this kind of plan through a fixed amount or percentage of their paychecks. They are often tax-deferred, such as a 401k or 403b. Employers sometimes add contributions to match those of the employees. There are restrictions on withdrawals without penalties.
  3. SEPs: These retirement savings accounts are known as simplified employee pensions that both employers and the self-employed can establish. They are easy to set-up and have low administrative costs. Employers can determine how much they want to contribute year-to-year, which is also tax-deductible.
  4. Profit Sharing Plans: Another option for providing a retirement plan includes giving employees a share in the company’s profits based on either quarterly or annual earnings. It gives employees a sense of ownership, yet it does have restrictions on withdrawals.
  5. SIMPLE Plans: This is a tax-deferred retirement account that employers and self-employed individuals can create. The acronym stands for Savings Incentive Match Plan for Employees of Small Employers, and the plan allows tax deductions for contributions. Both employees and employers can contribute to it.
  6. 412i Plans: This type is a defined-benefit pension plan. It is a tax-qualified benefit plan which means that owner contributions are tax-deductible. The only investment vehicles that may fund the program are guaranteed annuities or a combination of annuities and life insurance.

Plan for Retirement with Advice from Your Financial Planner

Don’t remain stuck believing there are only two retirement plan options for your business. Talk with us at Executive Planning Group to identify a plan for your employees and you. While you are looking at retirement benefits, talk to us about long-term and short-term disability insurance and other employee benefits.  Call on us for retirement and financial planning, life insurance, and other financial products. Request a quote online.

Call us at 601-982-3000 to speak with your financial planner in Jackson, Mississippi.

Disclaimer: Securities offered through Valmark Securities, Inc. Member FINRASIPC. Investment advisory services offered through Valmark Advisers, Inc., an SEC-registered investment advisor. Executive Planning Group is a separate entity from Valmark Securities, Inc. and Valmark Advisers, Inc.

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