Retirement Plans

Retirement Plans Bravery (2024)

Retirement Plans

Retirement Plans

Qualified vs Nongqualified plans Qualified Plans

Dowlified Plans core retirement plans for the exclusive benefit of employces and beneficiaries. Qualihel provide tax benefits and must be approved by IRS the plass mertise permanent and in writing communicated to all employees can be defined contribution arbenefits, and cannot ravor

highly paid employees, executives, or stockholders Features of Nualified Plans?

Employer contributions are tex-deductible as a business expense.tmployce contributions core made with preteaux clolbars interest Carned on contributions is tax-deferred

ontill withdrawn upon retirement Ares Non Nualified Plans:

They do not need to be approved by IRS. They can discriminate in fauceOf certain employees contritetion are not fax deductible and Interest commed on contributions is fax-deferred until withdrawn upon retirement

Retirement Plans
Retirement Plans

Tax Benefits of Qualified Plan

Employer’s contritations care Farreductible and not frented as taxable income to the employcevemployee contributions are made with prestax dolloors and an interest earned on both employer and employee. contribution are lax-deferred. Employees only pay fares on the amounts withdrawn withdraws and taxation

withdrawals by the employee cove trented as texable income withdrawls by the employee made prior to age 59t are assessed an additional wo penalty tax.withbrands. core mandatory at age 70%½ and Failure to take the reveried withdrawal results in a 50% tax pencally on those funds

Je Employee retirement Income Security Income Security Act (ERISA)ERISA was enacted to provide minimun. benefit Standards for pension alemployee benchit Plan, including bichicing responsibility reparting and disclosure pruatice and vesting


vesting Pules

vesting Rules determine how Participants achieve overship of contribution made by employers

two type of vesting.

Clift vesting

bpraded vesting

Defind Benetit Plans





Defined benefit Plens Quay or specified benefit amount upon the employers’s. 16 retirement. The sene lit is based on the employee’s length of service a evaning. The maximum benefit is the employee’s average annual Salary not to eulea $ 195,000

Contribution Plans

De Zined contribution plans do not specify to enut Senefit amount uniSimplified employee Plans.

Simplified Employee pension Plans known cy (seps) are qualified plans for Small employers seps case a mix of employers sep’s cure a FRA and Profit Sharing Plan.teach employee has his own IRA.The employer maths contributions into employee’ ‘SIRA An employer may eledict up to 25% of the total contribution made & all employees.simples

Plan as e also avaidahle do small businesses with less than 100 employusy. The employer make tax-deductible contributions equal to 2%) of the eligible employee’s compensatio as matching the employee’s contribution up to 3%. Pasly with chruab are subjent

to i dj% pantty Individual Retirement Plans. Individual Retirement Retirement Plans also called.

TRA do Save cuxe established by an Individual You retirement. Franditional IRA’s allow Jos an individual to contribute a linteal mount of money per year and the inkreylcarond is fax-deterred untill dimal

Rollovers are texable at 20% unless the Funds are depositolinto a new IRA ad qualified plan within body of dotintガン

Insurance objedion what do you say to clients who say

am healthy live healty, heave’l been sick to 20 years why shoul by injurance, well unfrohnately right cavit-in has actually proven, you are healty or not you congelsiviya t. but it doesit Can deny it.. men you can’t yet Sicks. Denindit is like you are being an astorichiyou put your head in the Sound right? And you’re saying I haul no rish I have no rist I have no Disk beause you can’t see it eit doesn’t remove the oists The Paredemic ha ackally Proven Irrospective of how old you are how rich you use which religion you follow it doesn’t matter right you can catch the virus you cam full biet this pandemic is. absolute proof that illness doesn’t 70llam guideliness just because you ase healty doesn’t from man you cannot

Full sick This pandemic is absoute proot so lem that’s you conversation. Pt’s or simple creample, they need thed enempe sight?: soov has asked the client, Client nowadays want to invest in caquity markets and pake term insurance so this is a very old theory. This is not a new theory sorar by ferom invest the

difference… Mochient, ingvorm is

Produt that helps

help you manage

commitments. Deperdin

yout how long you commitmatis, we can ise a produtt thet help, you manage your commitments so ille exemple If you have a mootonge, your mortgage is 700 2500 30 years we know how Long that commitment is you commitment is 100 25-30 years, we ase team inguonce for thet But your commitment to you femity It’s foreeves so it your commiput rs 700 whalk of liten your prodd whole of life, it’s ay haus to be for whole Simple as that you see jo con’t compare insurme to investments.

hey are wo differat thing. you should do investiments, absockety, but you should by the right, insurmt Podent Team insurance that’s very good wo Cirbilities Pixed term Comedicommitments for example, okay Ineed to make sure I 200

have enovy money enough kids education right okay Kayso so that Pime they’re 23 they have tiniste the educating can buy ferm insura

Ito cover that risk By 2) thy clone Part I Con se term insurance But my commitment to my deamily, my Commitmats o Jo my my my spouse, my commitmot chiblren is for whate of Taut commifnet deest choge I can full sick when I’m 751, Can 7all sick when I’m go My commtmet to myself is whole of life. Please understand that. The duration of your commitment decids the deration of your insurance

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