|
|
|
|
|
|
1)
|
Requires
IRS approval and filing.
|
Yes
|
No
|
|
2)
|
Ability
to pick and choose participants. (Even if
it is just the only stockholder or
owner)
|
No
|
Yes
|
|
3)
|
Provide
Current and Deferred tax
deductions.
|
No
|
Yes
|
|
4)
|
Limitations
on contribution amount.
|
Yes
|
No*
|
|
5)
|
Availability
to use the assets of the plan by the
company.
|
No
|
Yes
|
|
6)
|
Tax
deductions can exceed Company
contributions.
|
No
|
Yes
|
|
7)
|
Powerful
use of "Golden Handcuffs".
|
No
|
Yes
|
|
8)
|
Provide
income benefits should premature
disability occur.
|
No
|
Yes
|
|
9)
|
Ability
to include as participants in the plan
independent contractors and members of the
Board of Directors.
|
No
|
Yes
|
|
10)
|
Give
participant two (2) streams of income at
retirement.
|
No
|
Yes
|
|
11)
|
Company
receives current tax deductions without
making contributions beginning in the
eleventh (11th) year.
|
No
|
Yes
|
|
12)
|
At the
end of retirement payout to the
participant, the investment asset
belongs to the company.
|
No
|
Yes
|
|
13)
|
Tax
savings on the total tax deductions
(both current and deferred) may be
greater than the Company
contributions.
|
No
|
Yes
|
|
14)
|
Help
the Company ( C Corporation only) in a
Section 531 problem (Retained Earnings)
|
No
|
Yes
|
|
15)
|
Ability
to liquidate the plan prematurely without
incurring penalties to either the company
or participant.
|
No
|
Yes
|
|
*
Within reasonable restraints.
|
