Additional Retirement Plan Solutions

In addition to 401k and Cash Balance Plans, Shore Tompkins advises clients on other types of retirement plans.

Depending on your company’s needs and goals, we might recommend one or more of the following plan types. Or, if you have questions about whether one of these plans might be right for you, we’ll be happy to discuss them with you.

Either way, count on Shore Tompkins for a full range of services related to these plans: Consulting, plan design, annual administration, and more.

Plan TypeDescription

Profit Sharing Plans

Profit Sharing Plans are often paired with 401k plans to provide additional benefits to both the employees and owners.

Using a profit sharing component in addition to the 401k and match can allow an individual to reach the maximum annual contribution limit of $51,000 (or $56,500 if at least age 50).

Profit sharing contributions can be allocated to employees in myriad ways. Typically the profit sharing contribution is based on one or more of the following factors:

  • compensation
  • length of service to the company (tenure)
  • job function

Let us work with you to determine how best to create an effective profit sharing program for your company.

403b Plans

403b Plans are quite similar to 401k plans. However, to sponsor a 403b plan, your organization must be a non-profit, exempt from federal income tax under Internal Revenue Code Section 501(c)(3).

Because a 501(c)(3) nonprofit may also adopt a 401k plan, the organization should understand the differences between the two types of plans before deciding which type of plan to sponsor.

Let us help you make the best decision for your organization.

Traditional Defined Benefit Plans

Defined Benefit Plans can be structured in many ways. The hybrid defined benefit plan, called a cash balance plan, has become the most common type of defined benefit plan.

Because of its popularity, defined benefit plans that are not cash balance plans are typically called “traditional defined benefit plans”.

The traditional defined benefit plan provides the same maximum benefits as a cash balance plan, but the mechanics of how it works can create different funding and benefit results.

Traditional defined benefit plans may be the better option for you if you are thinking about implementing a defined benefit plan. Call us to help determine which type of defined benefit plan is right for you.

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