Retirement Plans

Plan B Investments, Inc. can set up a retirement plan for you. There are five different types of Individual Retirement Accounts. There's Individual, Traditional, Roth, Spousal, and Rollover. Each one is unique to themselves with their own rules and specific characteristics.

401(k) Retirement Plan

401(k) plan is an employer-sponsored plan, a step up from the SIMPLE PLAN and is more flexible and user-friendly for both employer and employee. Click here to learn more.

Simple IRA

A SIMPLE IRA plan is an IRA-based plan that gives small employers a simplified method to allow for employee and employer contributions toward their employees' retirement and their own retirement. Under a SIMPLE IRA plan, employees may choose to make salary reduction contributions and the employer makes matching or non-elective contributions. SIMPLE IRA plans are the lowest-cost, employer-sponsored retirement plans without the bells and whistles … a very basic plan.

Profit Sharing Plans (PSP)

There are different types of profit sharing plans (PSP) available, all with different types of benefits. Simply put, this is where the employer shares their profits with you. They contribute to your retirement plan so the better they do, the better you do. A win-win!

ESOP (Employee Stock Ownership Plan)

An ESOP or Employee Stock Ownership Plan is only for the owners of a privately held company. They can use an ESOP to create a ready market for their stock shares. Under this approach, the COMPANY can make tax-deductible cash contributions to the ESOP to buy out an owner's shares, or it can have the ESOP borrow money to buy the shares. In addition, they can defer capital gains with the right type of planning. The plans are complicated and expensive but well worth it for the right situation.

Defined Benefit Retirement Plan

Defining your retirement income benefit is known as a Defined Benefit Retirement Plan. This is the most liberal, employer "contribution only" plan. All plans have a contribution dollar limit. This is the most liberal and generous of all the employer's "contribution only plans."

If you make a lot of money you can put a large percentage of it into this tax-deferred plan.

SEP-IRA (Simplified Employer Pension Plan)

"Don't judge each day by the harvest you reap but by the seeds that you plant."

Robert Louis Stevenson

Simplified Employee Pension (SEP) plans can provide a significant source of income at retirement by allowing employers to set aside money in retirement accounts for themselves and their employees. This plan is a cost-reduced popular alternative to profit sharing plan for a small employer. A SEP does not have the start-up and operating costs of a conventional retirement plan and allows for a contribution of up to 25 percent of each employee’s pay.

  • Available to any size business
  • Easily established by adopting Form 5305-SEP, a SEP prototype or an individually designed plan document
  • If Form 5305-SEP is used, cannot have any other retirement plan (except another SEP)
  • No filing requirement for the employer
  • Only the employer contributes
  • To traditional IRAs (SEP-IRAs) set up for each eligible employee
  • Employee is always 100% vested in (or, has ownership of) all SEP-IRA money
  • Easily to administer and absolutely minimal on or even free of costs
(Source: IRS)

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Financial Services and more in Pasadena – Contact Us

Martin P. O'Malley, Jr.

525 Cordova Street, Suite 100
Pasadena, CA 91101

POB 2636
Pasadena, CA 91102-2636

Toll-free: 888-511-4611
Fax: 866-323-4538

Registered Investment Advisor
CA Ins. Lic. #0760229

Martin P. O'Malley, Jr