1.    401(k) Plan.  An employer-sponsored retirement plan named after the section in the tax code that creates the plans.  These plans allow employees to defer part of their pay without tax until the money is withdrawn at retirement.  401(k) plans are an important mechanism for business owners to take money out of the business in advance of retirement. 

2.    Cross Tested Profit Sharing Plan.  A multi-tier employer-sponsored retirement plan which allows different benefit structures for different employees or owners.  These plans require annual testing to avoid discrimination among the various tiers.

3.    Defined Benefit Plan.  An employer sponsored retirement plan, typically including pension, that offers specific benefits in the future, for which the employer is obligated to pay.  These plans have become less common than defined contribution plans, which have fixed upfront funding requirements.

4.    Combined Profit Sharing and Defined Benefit Plan...

Click here to download the Periodic Table and the Complete Definitions of the Periodic Table of Business Planning Strategies

Josh Patrick, President, The Patrick Group

http://www.patrickgroup.com

jpatrick@stage2planning.com

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