Phone(315)437-2484   Email info@bds-corp.com   Location5010 Campuswood Dr, Ste 105, E. Syracuse, NY
Employee Benefits Syracuse NY Insurance, Retirement Specialists in Syracuse NY
Enjoy Your Retirement - Retiring Optional

BDS provides a consultative approach to retirement plan design and administration. We assist our clients in defining their financial objectives, complete a needs analysis, and assemble a vision profile based on what we have learned about them through listening and understanding their needs.

Retirement Plans: Contact Us
Retirement/Pension Plans

Qualified Retirement Plans

Profit Sharing:

Salary Ratio

  • Employer allocates a uniform percentage of compensation to all participants
  • Best for employers who do not wish to cover certain part-time employees and want more control over assets

Integrated

  • Provides an additional share of the employer contribution to be based on compensation that would otherwise accrue minimal Social Security benefits or none at all
  • Favors higher paid employees that are the same age or younger than other employees

Age Based

  • Favors older participants since contributions are based on both age and compensation
  • Advantageous in situations where the key employees are significantly older than other employees
  • Well-suited for small business and professional practices

New Comparability

  • Establishes allocation groups with different employer contribution percentages to be given to each group
  • Best for small to medium groups where greater contributions for a select group are desired

401(k) Traditional and Roth

  • Flexible, low-cost, and efficient retirement plans
  • Attractive to younger employees and serve as an effective recruiting tool
  • Offer pre-tax employee contributions and tax-deductible employer contributions
  • Not favorable to highly compensated employees

401(k) Traditional and Roth with Safe Harbor

  • The Safe Harbor match is a guaranteed employer contribution each year that exempts the plan from testing employee deferrals
  • Allows higher paid participants to defer the maximum allowable amount

414(h) Pickup

  • For government plans and exempt from non-discrimination rules applicable to private sector plans
  • Treats salary reductions as employer contributions as long as employees do not have the option of receiving the benefit directly
  • Because the employee contribution is mandatory and is “picked up” by the employer, it is tax-deferred

Pension:

Split Funded Defined Benefit

  • All contributions are made by the employer and are split between a plan-owned life insurance policy and traditional investments such as mutual funds
  • Reduced tax burden, guaranteed retirement income, and income-tax-free life insurance benefit if the owner dies prematurely
  • Ideal for small business owners who are 40 to 60 years old

Fully Insured Defined Benefit [412(e)(3), formerly 412(i)]

  • Employer contributions must be invested in life insurance and a fixed annuity
  • Higher tax-deduction limit than most plans and lower administration costs
  • Ideal for small business owners that can commit to making large, regular contributions
  • Plan assets are protected from lawsuits and creditors)

Cash Balance Defined Benefit

  • Specific annual employer contribution credited to each participant’s account with guaranteed return
  • Accelerated (age-based) savings and a large tax deduction for the business
  • Allows larger contributions for owners and key employees but also good return for rank and file
  • Ideal for small business owners that can commit to making large annual contributions)

Money Purchase

  • Mandatory annual employer contributions in proportion to employee wages up to limits
  • Annual top-heavy testing required to avoid favoring highly compensated employees
  • Higher administrative costs but contributions are a deductible business expense

Target Benefit

  • Like defined benefit plans in that contributions are based on a projected ”target” benefit
  • Like defined contribution plans in that benefits are based on investment performance and NOT guaranteed
  • Allow older participants to receive a larger share of contributions)

 Other Plans:

SEP

  • Easy to set up, no annual documents to file, and inexpensive to administer
  • Ideal for self-employed and small businesses
  • Can have another retirement plan along with the SEP
  • Flexible: can make large percentage contributions during good financial years and reduce contributions during hard times

SIMPLE

  • Easy and inexpensive to administer; no discrimination testing required
  • Ideal for self-employed and companies with fewer than 100 employees
  • Employer must contribute and employee may contribute
  • Lower contribution limits than some other retirement plans and inflexible contributions

403(b)

  • For certain employees of public schools, tax-exempt organizations, and ministers
  • Shared cost of funding between employers and employees
  • Reduced taxable income through pre-tax contributions
  • Tax-deferred earnings on plan contributions

IRA

  • Variety of plans allow individuals to save for retirement with different tax advantages, employer and employee responsibility, and contribution limits

 


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