Qualified Plans
Roth IRA
is a form of an individual retirement account funded with after-tax contributions. An individual can contribute 100% of earned income up to an IRS-specified maximum. Roth contributions contributions can continue beyond age 70. Roth IRAs grow tax free as long as the account is open for at least 5 years.
Simplified Employee Pensions (SEP)
a SEP is a type of qualified plan suited for small employer or for self-employed. In a SEP an employee establishes and maintains an individual retirement account to which the employer contributes.
SIMPLE Plans
a Savings Incentive Match Plan for Employees plan is available to small businesses that employ no more than 100 employees who receive at least $5,000 in compensation from the employer during the previous year.
401K Plan
a qualified retirement plan allows employees to take a reduction in their current salaries by deferring amounts into a retirement plan. Participants may chose to do one of the following, receive taxable cash compensation, or have the money contributed into the 401K. 401K plan may be arranged as pure salary reduction plan, bonus plan or thrift plan.
Qualified Plans
a qualified retirement plan is approved by the IRS, which then gives both the employer and employee benefits such as deductible contributions and tax-deferred growth.
403B - Tax Sheltered Annuities
a tax-sheltered annuity (TSA) also referred to as a tax-deferred annuity, or tax-sheltered account, or 403B plan, is a qualified plan available to employees of certain nonprofit organizations under Section 501C. Example - Teachers
IRA
an individual retirement account (IRA) allows individuals to make contributions until the age of 70 1/2. Individuals who are age 50 or older are entitled to make additional catch-up contributions.
Section 529 - College Savings Programs
college savings plans were created by Section 529 of the Federal Tax Code. Each state can modify how the plan is run within its own boundaries. In NYS investors can contribute up to a lifetime maximum of $235,000 into a college savings account. New York allows a tax deduction of $10,000 per year for couples or $5,000 per year for individuals
Corporate Defined Contribution Plan
have become much more popular that defined plans because they are generally more flexible and less expensive for employers to administer.
Corporate Defined Benefit Plan
the employer specifies an amount of benefits promised to the employee at his or her normal retirement date.
HR-10 or Keogh
plans make it possible for self-employed persons to be covered under an IRS qualified retirement plan. Contributions are tax deductible and it accumulates tax-deferred until withdrawal.
Profit Sharing Plans
profit sharing plans are qualified plans where a portion of the company's profit is contributed to the plan and shared with employees, contributions must be systematic and substantial.
