Grove Financial Group, Inc.

Leon Grove, DBA

You have options in your Qualified Retirement Plan

Traditional Defined Benefit Plans - the Pension Protection Act of 2006 (PPA) rewrote all the rules regarding funding of Defined Benefits plans and has increased the flexibility of the contributions.

New Comparability Profit Sharing Plans - divides employees into groups and allows the employer to contribute a different percentage of pay for the employees in each group on a fully tax deductible basis.

401(k) Plans (including Safe Harbor plans) - allows the "Highly Compensated Employees" (Generally those making over $100,000, and all the owners of the company) to contribute their maximum elective deferral ($16,500 if under age 50 and $22,000 if age 50 or over) no matter what the other employees contribute as elective deferrals.

412(e)(3) Defined Benefit Plans - allows an older business owner to accumulate substantial retirement funds if he/she has only a short period to retirement. A good candidate for this plan design is an older independent contractor with few employees (or none) who is earning a very high income.

Leon Grove, DBA

You have options in your Qualified Retirement Plan

Traditional Defined Benefit Plans - the Pension Protection Act of 2006 (PPA) rewrote all the rules regarding funding of Defined Benefits plans and has increased the flexibility of the contributions.

412(e)(3) Defined Benefit Plans - allows an older business owner to accumulate substantial retirement funds if he/she has only a short period to retirement. A good candidate for this plan design is an older independent contractor with few employees (or none) who is earning a very high income.

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