Retirement Funding Options
At Fletcher Law Firm, P.A., a major focus of our firm is on designing defined benefit pension plans to assist our clients in reducing their income taxes and saving money for their retirement. These IRS approved plans allow you to make income tax-deductible contributions which are far greater than the amount funded with a standard profit-sharing or money purchase plan. The contributions are income tax-deductible, the fund accumulates tax-free, and the assets are protected from creditors. Our defined benefit plan clients typically fund from $50,000 to $500,000 per year to their plans. 

If you are interested in significantly decreasing your income taxes while increasing your retirement savings, we can design, implement, and administer a pension or profit-sharing plan for the specific needs of your business. Simply call our office toll free at (866) 907-7600 to schedule a free initial consultation.

Types of Qualified Plans
A qualified plan may be either a defined benefit plan, which includes pension and annuity plans, or a defined contribution plan, which includes profit-sharing, stock bonus and money purchase plans. 

Defined Contribution Plans
A defined contribution plan provides an individual account for each employee. The benefits are based solely on the amount contributed to the account, plus any income, expenses, gains and losses, as well as any forfeitures of accounts of other employees that may be allocated to the account.

• Money-Purchase Pension Plans
  A money-purchase plan provides a benefit based on the total amount of employer contributions in a participant's account.
  
  Target Benefit Plans
  A target benefit plan is a money purchase plan that sets a targeted benefit to be met by actuarially determined contributions. The employer's contributions are designed to meet the targeted benefit, but the employee's actual benefit is based on the amount in his individual account.
  
  
• Profit-Sharing Plans
  A profit-sharing plan provides for participation in profits by employees and their beneficiaries. The profit-sharing amount is usually determined by the employer at its discretion.
  
  
• Age-Weighted Profit-sharing Plans
  An age-weighted profit-sharing plan is a plan that takes age into account when allocating contributions.
  
  
• Stock Bonus Plans
  Stock bonus plans are defined contribution plans that provide for distribution of benefits in the form of the employer-company's own stock.
  
  
• Employee Stock Ownership Plans (ESOPS)
  An ESOP is a stock bonus plan designed to invest in qualifying employer securities and may be coupled with either a profit-sharing plan or a money purchase plan.
  
  
• 401(k) Plans
  A 401(k) plan, also called a cash or deferred arrangement, is actually a qualified plan feature which can be part of a profit-sharing plan, stock bonus plan, or in some instances, a money purchase plan. A 401(k) plan allows an employee to choose whether his employer should pay a certain amount in cash or contribute the amount on behalf of the employee to a qualified profit-sharing or stock bonus plan.
  
  

• Simplified Employee Pension Plans
  A simplified employee pension plan (SEP) is an individual retirement account (IRA) or IRA annuity established and maintained by the employee to which an employer may contribute.

• Self-Employed Plans
  Self-employed plans are established by self-employed persons and are generally subject to the same rules as plans established by corporations.

• The Last Great Tax Shelter: Defined Benefit Plans