Retirement Plan Services


What are Qualified Plans?

A qualified plan is a type of retirement plan established by an employer for the benefit of the company's employees. Its a regulated plan which meets certain IRS and ERISA requirements, consequently having certain tax advantages. These requirements include nondiscrimination requirements prohibiting an employer from providing benefits for a limited group of employees. The requirements also put a limitation on the amount of benefits that can be provided. 

What are Non-Qualified Plans?

A non-qualified plan is an unregulated plan which is not subject to the nondiscrimination requirements.  It can be designed to cover a limited group of employees and bring parity to those that have been discriminated against in a qualified plan. Also, a non-qualified plan can provide benefits in excess of those permitted under the qualified plan limits.

Why Would an Organization Use One Plan or the Other?

Because a qualified plan provides some security to the employee and tax advantages to the employer, most organizations have some sort of qualified retirement plan for all levels of employees (e.g. 401(k), pension plan, profit sharing, etc.).

 If the organization wants to ensure that a select group of employees receives a retirement amount commensurate to the current level of compensation, the business would have a non-qualified retirement plan. It is important to note that most non-qualified plans are offered to bring the employee to the qualified benefit level. With a non-qualified plan, the employer has a retention benefit and the employee has the potential for additional retirement income. 

 Each plan has various benefits and disadvantages. The application of the plans depends upon whether the organization wants to supplement the retirement income of all or a select group of employees. The decision to implement and how to structure either type of plan depends on the company's total rewards philosophy.

We offer the following qualified and non-qualified plans:

  • Qualified Plans
    • SEP
    • Simple
    • 401(k)
    • Profit Share
      • Traditional
      • Integrated
      • Age Weighted
      • New Comparability
    • Defined Benefit
      • Traditional
      • Cash Balance
      • 412(i)
  • Non-Qualified
    • Deferred Compensation
      • Defined Benefit SERP
      • Defined Contribution SERP
      • 409(a) Deferral Plan
    • 162 Executive Bonus Plan

 For more information on Retirement Planning Services please contact us at (251)342-0446.