Employer-sponsored retirement plans - Simply stated, these plans offer the most financially attractive and efficient way for owners and their employees to save for the future.

Tax-deductible contributions and tax-deferred asset growth make a qualified plan particularly attractive for business owners. A 401(k) plan combines these advantages with a structure which encourages and facilitates saving for retirement by employees. The popularity of 401(k) plans is based on the fundamental need of American employees to prepare more adequately for their future. 401(k) plans have been recognized as the plans which combine employee savings with employer contributions for a powerful, "thrifty" approach to saving for retirement. 401(k) plans have emerged as the plans that will help employees face the future.

401(k) plans 

* Subject to IRS limitation. Participant contributions will be allowed to increase $1,000/year until 2006 when cap is $15,000. Make-up provision will be allowed to increase $1,000/year until 2006 when cap is $5,000.   Earnings on contributions grow tax-deferred until you withdraw them. Companies may also make contributions or matching contributions to the plan.  After 2006, both amounts will be indexed.

Profit-sharing plans

In these plans, the company makes a discretionary contribution to your retirement account. The contribution is generally based on the success of the company. Participant contributions are not allowed.

Money purchase plans

Based on a formula, the company promises a fixed annual contribution to all eligible employees. Participant contributions are not allowed.

Simplified employee pension plans (SEPs)

SEP's are for small businesses. An IRA is established for each participant, allowing the opportunity for tax-deferred growth.

Contact an investment professional to answer questions and assist you with this process.

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