Get Retirement Plan Questionnaire - Benetech Inc

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.

But they also have their downsides: Employees can't choose their plan. There are limited drawdown options. If an employer experiences financial difficulties, the employee may receive less.

A defined contribution plan such as a 401(k) lets employees (and sometimes employers) contribute to an investment account. A defined benefit plan, on the other hand, promises employees a set benefit at retirement and puts the responsibility of providing that benefit — including the investment risk — on the employer.

Defined benefit plans provide a fixed, pre-established benefit for employees at retirement. Employees often value the fixed benefit provided by this type of plan. On the employer side, businesses can generally contribute (and therefore deduct) more each year than in defined contribution plans.

Page reading time: 1 minute. A super fund where your retirement benefits are calculated by a predetermined formula. Retirement benefits are usually calculated using your average salary over the last few years before you retire and the number of years you worked in the company or public service.

Defined Benefit and Cash Balance Pension Plans offer the largest annual tax deductible contributions and savings for business owners in that, depending on an owner's age and compensation, annual deductible contributions for an owner may be as high as $250,000 or more allowing up to $2.9 million in tax deferred savings ...

$25,000 life insurance policy. Home office expense reimbursement for remote employees. Educational reimbursement – Up to $1,500 per year for qualified coursework. 401(k) plan with a company match of 50% on the first 4% of salary deferral.