RETIREMENT PLANS

On this page are are short summaries on many of the different Retirement Plans we provide. For further information, please use any of the links provided below each definition for your convenience to contact us.

Areas of Concentration

• 401K
• Profit Sharing
• Tax Deferred Annuity
• Simplified Employee Pension
• Custom Strategies
• Financial Consulting
• 529 College Savings
• Deferred Comp

 

401K: A well-designed 401(k) plan can help attract and keep talented employees. It allows participants to decide how much to contribute to their accounts. Employers are entitled to a tax deduction for contributions to employees' accounts. A 401(k) plan benefits a mix of rank-and-flle employees and owners/managers. The money contributed may grow through investments in stocks, bonds, mutual funds, money market funds, savings accounts, and other investment vehicles.

Contributions and earnings generally are not taxed by the Federal Government or by most State governments until they are distributed. A 401(k) plan may allow participants to take their benefits With them when they-leave the company, easing administrative responsibilities.

Profit Sharing: A well-designed profit sharing plan can also help attract and keep talented employees. Contributions to a profit sharing plan are discretionary. The employer can choose when and how much to contribute. This type of plan gives employers flexibility in design of key features. A profit sharing plan benefits a mix of rank-and-file employees and owner/managers. The money contributed may grow through investments in stocks, mutual funds and other investment vehicles.
Contributions and earnings generally are not taxed by the Federal government or by State governments until they are distributed. A profit sharing plan may allow participants to take their benefits with them when they leave the company, easing administrative responsibilities.

Tax Deferred Annuity: A type of annuity contract that delays payments of income, installments or a lump sum until the investor elects to receive them. This type of annuity has two main phases, the savings phase in which you invest money into the account, and the income phase in which the plan is converted into an annuity and payments are received. A deferred annuity can be either variable or fixed.

If owned by an individual, all earnings in an annuity are free of current federal, state, and local income taxes until you start receiving annual payments. This enables all earned annuity income to compound without being reduced by current income taxes.

Simplified Employee Pension: A SEP is a simplified employee pension plan. A SEP plan provides employers with a simplified method to make contributions toward their employees' retirement and, if self-employed, their own retirement. Contributions are made directly to an Individual Retirement Account or Annuity (IRA) set up for each employee (a SEP-IRA).

Custom Strategies: When profit sharing may not be enough, an additional strategy may include the use of new comparability. New comparability plans are a version of profit sharing that was created in the early 1990s. They have proved particularly popular with small businesses. New comparability plans were tacked on to an existing 401(k) and can boost retirement savings annually.

Traditional profit-sharing plan designs use either a flat percentage to allocate profits among participating employees, or an approach that is integrated with Social Security. This feature is intended to benefit those earning in excess of the Social Security wage base, people who are getting no retirement benefit that reflects that incremental income. By contrast, new comparability plans, which are governed by the nondiscrimination standards of the tax code's section 401(a)(4), permit substantially higher levels of distributions to highly paid employees. Let BBG work with you on a custom strategy to combine the benefits of 401 (k)'s, profit sharing, and new comparability to maximize the effect of your plan's contributions.

Financial Consulting: At certain income levels, maximizing your contributions may not provide enough income in retirement to replace pre-retirement levels. BBG can work with you to provide adequate income in your retirement to meet your needs.

529 College Savings: A 529 plan is a tax-advantaged savings plan designed to encourage saving for future college costs. 529 plans, legally known as "qualified tuition plans," are sponsored by states, state agencies, or educational institutions and are authorized by Section 529 of the Internal Revenue Code. Each state that offers a 529 plan determines how its plan is structured and which investment options are offered.

Deferred Comp: Deferred compensation is income that is paid at a future date after being earned. The Internal Revenue Service applies certain tax rules to individuals who receive deferred compensation. Deferred compensation comes in many types, and different tax rules apply to each type. Examples of deferred compensation include pensions, retirement plans, and stock options. The primary benefit of most deferred compensation is the deferral of taxes.

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