Qualified retirement plans offer both great benefits to your employees and significant tax advantages to your business. Each of these plans has inherent strengths, as well as differing restrictions and legal requirements. All can be highly advantageous with proper planning, promotion and administration. RAI consultants will help you choose the best plan for your company through careful analysis of your specific needs. Among the most important points to consider are:

Issues such as continuing profitability and cash flow can determine how much you can afford to spend on plan funding and administration, both now and in the future.

The makeup of your workforce (ages, salaries, years of service, employee turnover rate, etc.) greatly influences your plan options.

Company owners, key executives and other workers all have expectations regarding benefits programs. Addressing these concerns early can result in a plan that everyone can support and appreciate.

Cafeterian Plans

Another tax-favored plan option is the Section 125 or “Cafeteria” Plan. These plans allow for conversion of many after-tax expenses (such as group health, life and disability insurance premiums, unreimbursed medical expenses and dependent care) to pre-tax benefits. Savings to the company and to employee participants can be dramatic. The employer saves FICA and Workers' Compensation Insurance premiums. Employees save on federal and state income taxes as well as their share of FICA.