Defined Contribution Plans Quick Links
- 401(k)
Like a traditional profit sharing plan, a 401(k) plan offers flexibility and tax deductible employer contributions together with tax-deferred accumulation of assets. - Profit Sharing Plans
In Profit Sharing Plans the contributions are discretionary. This provides the employer with a great degree of flexibility regarding contributions. - Money Purchase Pension
A Money Purchase Pension is another specfic type of retirement plan. Here the plan obligates the employer to contribute a fixed amount each year, ordinarily a percentage of the participants' compensation. - ESOP
An Employee Stock Ownership Plan (ESOP) is an employee benefit plan that invests primarily in the stock of the sponsoring company. The stock is allocated to the participants who then become shareholders of the company.
401(k) Plans
401(k) plans are a special type of qualified profit sharing plan that allows before-tax employee contributions. Many plans also allow for employer matching contributions. Like a traditional profit sharing plan, a 401(k) plan offers flexibility and tax deductible employer contributions together with tax-deferred accumulation of assets.
Unlike traditional plans, the 401(k) plan allows employees to choose cash "take home pay" verses "saving for tomorrow" deferral of income. This choice of cash or deferral makes 401(k) plans very flexible and popular. And because no employer contributions are required, 401(k) plans can be very cost effective.
Dugan & Lopatka Financial Services can help design an appropriate retirement plan for you and your business.
Please give us a call today.
Dugan & Lopatka Financial Services, LLC104 E. Roosevelt Rd., Wheaton, Illinois 60187Phone: (630) 665-0914Fax: (630) 665-5030
DUGAN & LOPATKA FINANCIAL SERVICES IS NOT AN AFFILIATE COMPANY OF LPL FINANCIAL. SECURITIES AND ADVISORY SERVICES OFFERED THROUGH LPL FINANCIAL, A REGISTERED INVESTMENT ADVISOR, MEMBER FINRA/SIPC.
