Retirement Plans

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A simplified employee pension (SEP or SEP IRA) is a retirement plan that an employer or self-employed individual can establish. The employer is allowed a tax deduction for contributions made to the SEP plan.  SEP IRAs often have higher annual contribution limits than standard IRAs. One major benefit it offers employees is that employer contributions are vested immediately.

A SIMPLE IRA is a retirement savings plan that most small businesses with 100 or fewer employees can use.  Employers can choose to make a 2% retirement account contribution to all employees or an optional matching contribution of up to 3%.   The appeal of SIMPLE IRAs is that they have minimal paperwork requirements.   One drawback of SIMPLE IRAs is that the business owner cannot save as much for retirement as with other retirement plans.

A Safe Harbor 401(k) plan is a type of 401(k) with an employer match that allows the employer to avoid most annual compliance tests. If a 401(k) includes a Safe Harbor provision, the employer makes annual contributions on behalf of employees, and those contributions are vested immediately.

A cross-tested, or new comparability, plan is a type of profit-sharing plan that permits the sponsor to divide employees into different groups and project what a current contribution would amount to at retirement age, opening up the possibility of rewarding older employees with higher-dollar contributions.  

A type of pension plan in which an employer/sponsor promises a specified pension payment, lump-sum or combination thereof on retirement that is predetermined by a formula based on the employee's earning history, tenure of service and age, rather than depending directly on individual investment returns.  

Maximize earnings by transferring cash from checking account into business account.  We use money market funds - consisting of treasuries and certificate of deposits to maintain liquidity while earning interest.