Qualified Plans
Vesting requirements
-participants receive benefits after certain length of employment -Employee contributions made to a qualified plan must have these
SIMPLE plan
A SIMPLE plan is available to small businesses that employ not more than 100 employees receiving at least $5000 in compensation from the employer during the previous year.
Who would be allowed catch-up contributions in an individual qualified plan?
Individuals 50 or older
HR-10 plan
Qualified retirement plan for self-employed individuals. May be organized as a defined contribution plan or a defined benefit plan. Synonymous with Keogh Plan.
What does a qualified plan mean?
Tax advantages
The advantage of qualified plans to employers is
Tax-deductible contributions
A 403 (b) tax sheltered annuity is available for
Teachers and nonprofit organizations
Simplified Employee Pension plan (SEP)
A type of qualified plan suited for the small employer. An arrangement whereby an employee establishes and maintains an individual retirement account to which the employer contributes