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Types of Plans

Ascensus Consulting provides design, document preparation, compliance, and government reporting services for many types of tax qualified defined contribution, defined benefit, and cash balance plans from its offices in Indiana, New Jersey and Florida.
  • Traditional 401(k) Plans
  • Safe Harbor 401(k) Plans
  • Individual 401(k) Plans
  • Roth 401(k) Plans
  • 403(b) Plans for Nonprofit Organizations
  • Traditional Profit Sharing
  • New Comparability Profit Sharing
  • Money Purchase
  • Davis-Bacon also known as Prevailing Wage Plans
  • Defined Benefit Plans

In 1978, the U.S. government developed Tax Qualified Retirement Plans, sponsored by employers that encouraged individuals to save for retirement. These plans are commonly referred to as “401k plans.” “401(k)” has become a generic term for employer sponsored retirement plans, but it is really a reference to the section of the Internal Revenue Code that provides for an optional "cash or deferred" method of getting contributions from employees.

Depending on the type of company sponsoring the plan, and specific plan design considerations, other types of plans might be more appropriate. Each type of employer sponsored plan also has its own specific variables, and must comply with rules and laws established by the Internal Revenue Service and the Department of Labor.

Plan rules vary based on how the employer sets the program up, but basically a tax qualified retirement plan allows eligible employees and/or the employer to make contributions to the plan, and defer paying taxes on those dollars until they are drawn out later, hopefully during retirement. But as with anything that involves the Internal Revenue Service or taxes, many rules must be followed to gain the proper benefits and avoid penalties.

Contact us for more information.