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.
Employee Stock Ownership Plans
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. When participants leave or retire, their benefits are based on the current market value of their individual ESOP account.
In addition to providing retirement benefits for employees, an ESOP is a very useful financial tool for the owners too. The employees get an opwnership of the company and a retirement plan with tax-deferred growth potential. The owner benefit too:
- Provide a productivity incentive for employee-owners.
- Take tax deductions for contributions to the plan.
- Take tax deductions for stock dividends.
- The ability to sell ownership.
- Increased cash flow and working capital.
Ask Dugan & Lopatka to help you find a plan that serves your needs.
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.
