Qualified Retirement Plans

Why should you sponsor a qualified retirement plan? Qualified retirement plans are considered by most financial planners to be the best tax deferral program available today.  Current contributions to the plan are not subject to corporate or personal income tax -- in fact, the plan sponsor gets to deduct the contribution (subject to certain limitations).  Funds in the plan accumulate tax deferred, with the plan participants paying the income tax on the money at the time they take the plan benefits as income, at which time they are normally in a lower income tax bracket.

There are two basic types of retirement plans: