Picking the right plan structure is the first step to ensure reaching your goals. Ekon Benefits specializes in consulting and administration services for all types of employer and union-sponsored retirement plans. We will assist you in selecting and designing a retirement plan that meets the needs specific to you and your participants.
Currently the most popular plan structure, 401(k)'s, are suited for employers who want to encourage employees' pre-tax savings. Employers have flexibility to make matching or profit sharing contributions to 401(k) Plans.
Established by organizations qualified under IRC section 501(c)(3), such as schools, churches and hospitals that want to encourage employees' pre-tax savings.
Established by non-profit organizations and state and local governments that want to encourage employees' pre-tax savings.
Defined Benefit Plans
Defined Benefit Plans are best suited for employers who have stable profits and who want to benefit older career employees. Required annual contributions are determined by actuarial computations. Benefits are determined by a definite formula and are usually related to salary and service.
Profit Sharing Plans
Contributions are discretionary and can be allocated to participants by an integrated, non-integrated or a cross-tested method. Annual employer contributions can be up to 25% of salary.
Money Purchase Plans
Annual contributions are a fixed commitment. With the contribution limit for Profit Sharing Plans, Money Purchase Plans will become obsolete and are being merged into Profit Sharing Plans.
Employee Stock Ownership Plans (ESOPs) and Leveraged ESOPs
Employee Stock Ownership Plans allow employees to share in company ownership. ESOPs are also used to defer the gain on the sale of a company. Funds are primarily invested in employer securities.