Author Information
Gary Lucas has 4 Published Articles

United States of America,
California,
Woodland Hills,
21820 Burbank Blvd, Suite 269,
Los Angeles



Pension plans for small business benefiting both employers and employee

Posted On : Aug-11-2011 | seen (217) times | Article Word Count : 566 |

Pension plans both employer and employee will be in a win -win situation. It will help both the collaterals. Employers can better retain the employees through this wooing pension plans.
In USA there are considerable amount of pension plan for small business available but most of the small business are far from benefiting it. The department of labor in USA is working closely with these small businesses to educate them about numerous pension schemes available to them by the federal government. There are several plans but out of all these pension plans such as SIMPLE (Savings Incentive Match Plans for Employees of Small Employees), SEPs (Simplified Employee Pensions), 412i defined benefit plans, 401 pension plan and 412 e 3 defined benefit plan are most workable and more valid for small business employees.

Under these plans an employee can avail indispensable pension schemes. Both government and private companies are working hand in hand to educate employees about pension plan for small business. By providing pension plans both employer and employee will be in a win -win situation. It will help both the collaterals. Employers can better retain the employees through this wooing pension plans.

412i defined benefit plan is specially designed plan for employers of small business in USA. Under this plan employees save tax under business plan. Any sum that the owner contributes becomes automatically calculated as tax deduction to the company. Some third party, as insurance companies or some other guarantor funds this plan. This 412i defined benefit plan is designed solely for owners of small businesses who are much more vulnerable to volatile market situation. And it makes them little difficult for these owners to invest in their own company. This plan also acts as retirement benefit plan for its contributors, which is funded by insurance companies.

401a Pension Plan is retirement benefit plan .It offers flexibility to the employer and indispensable facilities to employees. The employer makes contribution of money under this plan and it is employer who takes vital decisions about the type of contributions. It is benefit programmed designed for private sector employees. An employer can opt for multiple 401a Pension Plan for its employee. This is used mainly to retain employees. In order to avail this 401 a pension plan an employee is prescribed to work certain amount of month in that particular company which is offering this pension plan benefit .One major benefit of this plan is that the amount which is their in employees account is not under the stake of market fluctuations. All risk, which is involved in it, is the onus of the employer not employee.

412 e 3 defined benefit plan is mainly for small business owners under the section of internal revenue code (IRC). This plan is often referred as fully insured plan because of its multi advantageous facilities. This benefit plan assures the owner of the plan guaranteed return on its contribution in the form of systematic annuity or through life insurance policies. This 412 e 3 defined benefit plan is cutting edge over traditional schemes.

Cash balance pension plan is type of retirement benefit plan for employees. Under this scheme the owner of the company deducts pre fixed amount from employees’ salary and deposits this cash in the account of its employees as a benefit retirement plan. The benefactor of this Cash balance pension plan is not subjected to any risk related with the amount, all the risk are to be encountered by the employer only.


For more info kindly visit: falcoconsulting.com

Article Source : http://www.articleseen.com/Article_Pension plans for small business benefiting both employers and employee_72889.aspx

Author Resource :
Gary Lucas is an author of this article who writes about the importance of Pension Plan for Small Business and 412 e 3 defined benefit plan. He has also written about the benefits of Cash Balance Pension Plan, 412i defined benefit plan and 401a Pension Plan.

Keywords : Pension Plan for Small Business, Cash Balance Pension Plan, 412i defined benefit plan, 401a Pension Plan, 412 e 3 defined ben,

Category : Finance : Finance

Bookmark and Share Print this Article Send to Friend