Types of Plans

Baden Retirement Plan Services provides design, document preparation, compliance and government reporting services for many types of tax qualified defined contribution plans.

• 401(k) Plans
• Traditional 401(k) Plans     
• Safe Harbor 401(k) Plans 
• SIMPLE 401(k) Plans 
• Individual 401(k) Plans 
• Roth 401(k) Plans
• 403(b) Plans for Nonprofit Organizations
• Profit Sharing 
• New Comparability  
• Money Purchase 
• Davis-Bacon also known as Prevailing Wage Plans 

In 1978, the U.S. government developed Tax Qualified Retirement Plans, sponsored by employers, to encourage individuals to save for retirement. These plans are commonly referred to as "401k plans." "401(k)" has become a generic term for employer sponsored retirement plans, but it is really a reference to the section of the Internal Revenue Code that provides for an optional "cash or deferred" method of getting contributions from employees.

Depending on the type of company sponsoring the plan, and specific plan design considerations, other types of plans might be more appropriate. Each type of employer sponsored plan also has its own specific variables, and must comply with rules and laws established by the Internal Revenue Service (IRS) and the Department of Labor (DOL).

Plan rules vary based on how the employer sets the program up, but basically a tax qualified retirement plan allows eligible employees to invest a portion of their income in the plan, and defer paying taxes on those dollars until they are drawn out later, hopefully during retirement. But as with anything that involves the IRS or taxes, many rules must be followed to gain the proper benefits and avoid penalties.

For more information, contact Tom Ackmann at (260) 969-2677 or use our Contact Us form to e-mail your inquiry.