Get guidance for every stage of retirement planning - and retire on your terms by considering the following retirement plan designs:

401(k)	Defined Benefit (Pension)
403B	SEP
Money Purchase Plans	Simple IRA
Profit Sharing Plans

401(k) and Defined Contribution plans

401(k) plans are employer-sponsored retirement plans. Defined Contribution type plans by definition mean that they define the contributions an employer can make and not the benefit that the employee will receive at retirement.

A 401(k) retirement plan is a special type of account funded through employee pre-tax payroll deductions and optional employer matching contributions. The funds in the account can be invested in a number of different stocks, bonds, mutual funds or other assets, and are not taxed on any capital gains, dividends or interest until they are withdrawn. This retirement savings vehicle was created by Congress in 1981 and gets its name from the section of The Internal Revenue Code that describes it - section 401(k).

The maximum contribution limit on your 401(k) account depends on your plan, your salary, and government guidelines. In short, your contribution limit is the lower of the maximum amount your employer permits as a percentage of salary (e.g., if your employer lets you contribute 4% of your salary and you earn per-tax, $20,000, your maximum contribution limit is $800, or the government guidelines as follows:

2007: $15,500.00

2008: $15,500.00

Catch-Up Contributions are permitted if you are fifty years or older and your employer offers "catch-up" contributions in your 401k plan. Eligible employees can contribute additional amounts up to the maximum contribution limits as follows:

2007: $5,000.00

2008: $5,000.00

Please contact us for additional information on how we could help prepare plans for your consideration.

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Defined Benefit Pension Plans — An Overview

Who may use - All types of businesses

Who must be covered - Any employee with 1,000 hours of service within one year and who is age 21 or older: can exclude certain employees

Annual Contributions

• Maximum annual contribution that the employer can deduct - Contribution is limited to the amount necessary to fund future benefits (maximum eligible pay per employee is $230,000)
• Maximum allocation to an employee's account - There are no individual accounts
• Maximum employee deferral - There are no employee contributions allowed
• Vesting - Vesting schedules are available
• Deadline for plan establishment - Last day of employer's fiscal year
• Participant Loans - yes - participant loans are allowed

Available Defined Benefit Pension Plan Providers for your company

(This is a partial list - we can provide information from any fund family):

• American Funds
• AIM Funds
• Fidelity Funds
• MFS Funds
• Evergreen Funds
• The Hartford
• TransAmerica

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403(b) Retirement Plans — An Overview

Who may use - Organizations qualified under Internal Revenue Code section 501(c)(3), such as schools and non-profit organizations

Who must be covered - After the first employee is allowed to participate all other employees who want to contribute at least $200 per year must be allowed to participate, regardless of years of service.

Annual Contributions

• Maximum annual contribution that the employer can deduct - Tax deduction is not an issue for tax-exempt organizations.
• Maximum allocation to an employee's account - 100% of employee's total pay or $46,000 for 2008, whichever is less.
• Maximum employee deferral - Up to $15,500 - plus catch-up contributions of $5,000 if 50 years of age or older.
• Vesting - Vesting schedules are available.
• Deadline for plan establishment - last day of employer's fiscal year - but no later than commencement of employee contributions.
• Participant Loans - yes - participant loans are allowed.

Available 403(b) Retirement Plan Providers for your company

(This is a partial list - we can provide information from any fund family):

• American Funds
• AIM Funds
• Fidelity Funds
• MFS Funds
• Evergreen Funds
• The Hartford
• TransAmerica

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SEP PLANS — An Overview

Who may use - All Types of Businesses

Who must be covered - Any employee who has worked for three out of the past five years - with 1,000 hours of service within one year and who is age 21 or older; can exclude certain employees.

Annual Contributions

• Maximum annual contribution that the employer can deduct - 25% of employee's pay
• Maximum allocation to an employee's account - 100% of employee's total pay or $46,000 for 2008, whichever is less
• Maximum employee deferral - no employee contributions are allowed
• Vesting - immediate 100% vesting
• Deadline for plan establishment - tax-filing deadline, plus extensions.
• Participant Loans - no loans are allowed

Available SEP Plan Providers for your company

(This is a partial list - we can provide information from any fund family):

• American Funds
• AIM Funds
• Fidelity Funds
• MFS Funds
• Evergreen Funds
• The Hartford

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Money Purchase Plans — An Overview

Who may use - All Types of Businesses

Who must be covered - Any employee with 1,000 hours of service within one year and who is age 21 or older; can exclude certain employees.

Annual Contributions

• Maximum annual contribution that the employer can deduct - 25% of total eligible payroll (maximum eligible pay per employee is $230,000).
• Maximum allocation to an employee's account - 100% of employee's total pay or $46,000 for 2008, whichever is less.
• Maximum employee deferral - no employee contributions are allowed
• Vesting - vesting schedules are available.
• Deadline for plan establishment - last day of employer's fiscal year.
• Participant Loans - yes - participant loans are allowed.

Available Money Purchase Plan Providers for your company

(This is a partial list - we can provide information from any fund family):

• American Funds
• AIM Funds
• Fidelity Funds
• MFS Funds
• Evergreen Funds
• The Hartford

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SIMPLE IRA - the small business 401(k) alternative

Eligible employers to provide the SIMPLE IRA include businesses with 100 or fewer employees, including state and local governments and tax-exempt organizations. The SIMPLE IRA offers the following advantages: employee tax-deferral, flexible employer contributions and minimal paperwork and tax filing. Employer contributions are not subject to Social Security/Medicare (FICA) or Federal Unemployment (FUTA) taxes. No top-heavy, ADP, ACP or 415 testing is required and also no 5500 reporting is required.
Any employee who earns $5,000 during any two preceding years and who is expected to earn $5,000 in the current year is eligible; certain employees can be excluded. The employer may also specify less restrictive eligibility requirements on the SIMPLE IRA adoption agreement to expand the group of employees who are eligible.

The following rules abide for Employer Contributions:

1. They may be changed annually
2. The minimum contribution required for all eligible employees earning at least 5,000 during the year are:
   1. A dollar-for-dollar match up to 3% of pay for those employees who are participating. This contribution may be reduced to as low as 1% for two of every five years.
   2. A contribution of 2% of pay for all employees whether or not they participate in the company's SIMPLE IRA.

The 2008 annual maximum deferral is $10,500. Employees 50 years of age or older may make additional catch-up contributions of up to $2,500 in 2008.

Available SIMPLE IRA Plan Providers for your company

(This is a partial list - we can provide information from any fund family):

• American Funds
• AIM Funds
• Fidelity Funds
• MFS Funds
• Evergreen Funds
• The Hartford

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Profit-Sharing Plans — An Overview

Who may use - All Types of Businesses

Who must be covered - Any employee with 1,000 hours of service within one year and who is age 21 or older. If immediate 100% vesting is offered - two years of service may be required. Profit sharing plans can exclude certain employees.

Annual Contributions

• Required employer contribution - Flexible contribution allowed each year (preset amount not required); however, employer must make "substantial and recurring" contributions.
• Maximum combined contribution that the employer can deduct - 25% of total eligible payroll (maximum eligible pay per employee is $230,000 for 2008)
• Maximum allocation to an employee's account - 100% of employee's total pay or $46,000 for 2008, whichever is less.
• Maximum employee deferral - no deferrals allowed without adding a 401(k) feature.
• Vesting - Choice of immediate 100% vesting or a range of schedules.
• Advantage - Employer contributions are discretionary.

Available Profit-Sharing Plan Providers for your company

(This is a partial list - we can provide information from any fund family):

• American Funds
• AIM Funds
• Fidelity Funds
• MFS Funds
• Evergreen Funds
• The Hartford

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