COMPANY RETIREMENT PLAN ALTERNATIVES
Flexible Retirement Solutions for Your Business
The Second Estate offers its clients versatile retirement fund options tailored for companies, offering flexibility and optimized benefits. Whether you're a sole proprietor, small business owner, or running a larger enterprise, we have a plan that fits your needs.
Traditional qualifying plans like 401(k)s and IRAs are often not the most efficient vehicles for business owners. Our team of professionals will work with you to identify the plan structure that maximizes your contributions, minimizes your tax burden, and protects your assets.
The programs offered by The Second Estate are based on foundational tax law and federal statutory codes working together to create, expand, and protect our client's financial position.
Types of Retirement Plans
DEFINED BENEFIT PLANS
A defined benefit plan promises a specified monthly benefit at retirement. The plan may state this promised benefit as an exact dollar amount, such as $100 per month at retirement. Or, more commonly, it may calculate a benefit through a plan formula that considers such factors as salary and service.
CASH BALANCE PLANS
A cash balance plan is a defined benefit plan that defines the benefit in terms that are more characteristic of a defined contribution plan. In other words, a cash balance plan defines the promised benefit in terms of a stated account balance.
PROFIT SHARING PLANS
A profit-sharing plan accepts discretionary employer contributions. There is no set amount that the law requires you to contribute. If you can afford to make some amount of contributions to the plan for a particular year, you can do so. Other years, you do not need to make contributions.
401(K) PLANS
A 401(k) plan is a qualified plan that includes a feature allowing an employee to elect to have the employer contribute a portion of the employee's wages to an individual account under the plan. The underlying plan can be a profit-sharing, stock bonus, pre-ERISA money purchase pension, or a rural cooperative plan.
EMPLOYEE STOCK OWNERSHIP PLANS (ESOPS)
An employee stock ownership plan (ESOP) is a type of qualified defined contribution plan in which plan assets are invested primarily in employer stock.
SIMPLIFIED EMPLOYEE PENSION (SEP)
A SEP plan allows employers to contribute to traditional IRAs (SEP-IRAs) set up for employees. A business of any size, even self-employed, can establish a SEP.