Qualified Retirement Programs
You may be familiar with what a retirement plan is, but what exactly is a qualified retirement plan? Private pensions or a 401(k) are both examples of a tax-deferred qualified retirement plan that the IRS allows employers to offer their employees. The benefit of a qualified retirement plan for an employee is that all contributions are pre-tax and your investments are allowed to grow without you having to pay annual tax on the growth. You only pay income tax when you withdraw money.
Employers are also incentivized to offer a qualified retirement plan because they are allowed to deduct 401(k) contributions from their company taxes, for example.
There are different types of qualified retirement plans, each with their own eligibility requirements and contribution limits, but these are the most common:
- Defined contribution plans, such as a 401(k)
- Employee stock ownership plans (ESOPs)
- Keogh plans or H.R. 10 plans for self-employed individuals
Administrative Services for Qualified Retirement Plans
Burnham & Flower retirement services specializes in qualified retirement plan consulting, record-keeping, compliance, and administration. We provide our clients with accurate and timely plan administration to insure compliance with IRS, ERISA, and DOL regulations. Our team stays educated and informed on current legislation changes and industry trends that could affect our clients and take steps to make them aware of these changes and trends as soon as possible.
We have developed a menu of administrative services that provide clients full compliance with all tax regulations. This complete menu assures plan sponsors, consultants, advisors, and other professionals that all aspects of a plan or trust’s administrative needs are met.