Pension Plans

Design and Implementation of Qualified Plans

Qualified defined contribution plans are often a key component of a solid proactive tax and estate plan. Whether you are considering setting up an individual plan or a plan for yourself and your employees, our experienced advisors can determine the right plan for you.

For individuals looking to incorporate a defined contribution plan to their estate/financial plan, we can design and implement individual retirement accounts. Individual retirement accounts (IRAs) are either traditional IRAs or Roth IRAs. Both are set up by an individual but whether the contributions made are deductible and whether the contributions are considered “pre-tax” or “post-tax” varies depending on if the plan is a traditional IRA or Roth IRA. Each has its own advantages, so it is important to have an experienced accountant or financial advisor analyze your situation and your goals to determine which is better for you.

For business owners who want to offer defined contribution plans as part of employee benefit packages, we can design and implement a variety of retirement plans, including:

  • Traditional 401(k)
  • Roth 401(k)
  • Simplified Employee Pension Plan (SEP)
  • Pension Plan
  • Profit-Sharing Plan
  • Savings Incentive Match Plan for Employees (SIMPLE)

As with IRAs, each type of retirement plan varies in its tax treatment, so have our accountants walk you through the details of each type. Our CPAs and advisors will design qualified defined contribution plans to help you save for retirement and preserve your wealth for your family.

Finally, if you are considering converting or rolling over your traditional or Roth 401(k) to an IRA, we can advise and assist you with that, as well. Remember the tax consequences of conversion can be significant, so be sure to let our accountants explain the pros and cons of rolling over a 401(k) to an IRA.

Administration of Qualified Plans

Whether your qualified plan is self-directed (also called “participant-directed”) or trustee-directed (also called “traditional” or “custodian-directed”), we can administer it for you.

The primary difference between a self-directed IRA and an IRA that is managed by a trustee or custodian is in the investment options. (With either type of plan, a trustee or custodian will still hold the assets of the IRA.) Generally speaking, traditonal IRAs are usually invested in stocks, bonds, CDs, and/or mutual funds. Self-directed IRAs, on the other hand, may be invested in real estate, precious metals, stock in private companies, and intellectual property, just to name a few options.

In either case, the IRS requires an administrator to perform record-keeping and reporting requirements for each plan. The plan participant may not perform his or her own reporting. As administrator for your self-directed or trustee-directed qualified plan, we can ensure that your funds maintain tax-deferred status.