Plan Design

When it comes to deferring compensation and saving for retirement, employers have many different choices.

Friedland Financial Planning will help sort through the options so you can make the best choice for your employees.

Qualified plans, or pension plans, can either be a Defined Contribution plan in which the employer defines what they are going to contribute; or a Defined Benefit plan in which the employer defines what the benefit is going to be.  Cash Balance plans are Defined Benefit Plans with Defined Contribution characteristics.  For different firms each approach has advantages. More employers, however, will find a Defined Contribution plan to be the right choice, but then this means choosing either a Safe Harbor 401(k) plan, a 403(b) plan, or a Profit-Sharing Plan. But in some cases it will make more sense to organize a Select Comparability Plan or a Age Weighted plan.

For single person enterprises, firms with few employees, or firms whose cash-flow is not steady, a Qualified Retirement Plan is not likely to make sense. But saving for retirement still does. For these employers there are a variety of options, including Simplified Employee Plans or SEPs, or a Savings Incentive Match Plan for Employees, better known as a SIMPLE plan. This could be a SIMPLE IRA or a SIMPLE 401(k). We will work with you to help you understand your options and direct you towards appropriate service providers.

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