Madison Pension Services provides consulting on the following types of plans. Through our process-oriented approach, we can help determine which type of plan is right for you.
Defined Contribution Plan >
DC
plans, also known as individual account plans, define the contribution
a participant receives under the plan. Types of DC plans include:
- 401(k) Plan
A 401(k) plan is a type of Defined Contribution Pension Plan that enables employees to make contributions to the plan before taxes. Contributions made to the plan reduce the employees taxable income while saving for retirement. - 403(b) Plan
A 403(b) plan, commonly referred to as a "tax sheltered annuity plan", is a type of Defined Contribution Pension Plan available only to employees of educational and charitable organizations. It enables such employees to make contributions to the plan before taxes.
- Profit Sharing Plan
A Profit Sharing Plans enables an Employer to provide employees with a retirement plan by linking a discretionary contribution to company profits.
Defined Benefit Plan
DB plans define the retirement benefit that is ultimately paid
to a participant. Typically, a participant will accrue a benefit
(usually a fixed percent of compensation, or fixed dollar amount)
for each year of credited service.
Money Purchase Plan
A type of defined contribution plan in which the employer's contributions are determined by a specific formula, usually as a percentage of pay. Contributions are not dependent on company profits.
ESOP Plan
A trust established by a corporate which acts as a tax-qualified, defined-contribution retirement plan by making the corporation's employees partial owners. contributions are made by the sponsoring employer, and can grow tax-deferred, just as with an IRA or 401(k).
Health Plan
Health plans address questions regarding group and individual insurance coverages. These client-critical benefits actually comprise numerous and varied subsets within them.
Flexible Spending Plans
A benefit offered to an employee by an employer which allows a fixed amount of pre-tax wages to be set aside for qualified expenses. Qualified expenses may include child care or uncovered medical expenses. The amount set aside must be determined in advance and employees lose any unused dollars in the account at year-end.
Non-Qualified Deferred Compensation Plans
A plan subject to tax, in which the assets of certain employees (usually Highly Compensated Employees) are deferred. These funds may be reached by an employer's creditors.