301 Lippincott Drive, 4th Floor • Marlton, NJ 08053
Phone: (856) 355-5905 • Fax: (856) 810-3995
At BJL Wealth Management, we work with business owners to enhance the retirement investment benefits not only for their employees but for themselves as well. We actively work with employers to shape their Qualified Retirement Plans to help fit the client's specific needs. At BJL Wealth Management, we not only provide the investment advice but we also work with Retirement Plan Consultants and Administrators to choose the best plan to fit the client's situation.
Business Plans provide many advantages such as:
- Employer contributions to the plan are tax deductible.
- Earnings on investments accumulate tax-deferred which allows contributions and earnings to compound at a faster rate.
- Employees are not taxed on the contributions and earnings until they receive the funds.
- Employees may make pretax contributions to certain types of plans.
- Ongoing plan expenses are tax deductible.
- Plan assets are protected from creditors
401 (k) Plans
This is the most common retirement plan used by companies. The rules allow for $16,500 contributions in 2010 and a "catch-up contribution" of $5,500 for any employees and employers over the age of 50. For investment purposes, we offer various mutual fund investment platforms and will work with the employers and employees of the company to allocate their individual portfolios.
Profit Sharing Plans
The profit sharing plan is one of the most flexible qualified plans available. Employers can add a discretionary benefit to the plan each year. This will create a larger deduction and increase the retirement contribution for individuals selected. The company contribution cannot exceed 25% of the total compensation of all eligible employees.
Defined Benefit Plans
This plan is used when an employer wants to shelter more than the annual defined contribution limit ($49,000 in 2010). The maximum benefit in this plan is 100% of compensation or maximum of $195,000 in 2010. The defined benefit plan is usually funded by the employer and promises the employee a specific monthly benefit payable at retirement age specified in the plan. The plan has a specific formula made up of many factors such as employee's compensation and years of service. The yearly contribution is then determined by an actuary each year to make sure the projected retirement benefit is on track.
412 Pension Plan
The 412 plan is another form of the Defined Benefit Plan. The investments used to fund the plan are a combination of annuities and life insurance. The Pension plan allows the client to contribute even more than a traditional defined benefit plan because it is based on guaranteed rates. Some of the benefits from this plan allow for higher tax deductions, increased retirement benefits, permanent insurance and the option for a rollover IRA when the plan is complete.
Securities offered through Registered Representatives of Cambridge Investment Research Inc. Member FINRA & SIPC. BJL Wealth Management, LLC and Cambridge Investment Research Inc. are separate entities.