Whether you are a sole proprietor, partnership or a corporation, there are several types of qualified retirement plans that can meet your needs. A retirement plan can serve many purposes, from tax sheltering income to attracting and retaining employees.

Here is general information about the most popular types of retirement programs. Our team will take the time to listen to your goals and objectives, then help you choose the plan design that is best for your business. 

A qualified retirement plan must meet a certain set of requirements set forth in the Internal Revenue Code such as minimum coverage, minimum participation, vesting, and funding requirements. In return, the Plan Sponsor is afforded numerous tax advantages or deductions to encourage the establishment of one or more retirement plans including:

  • Employer contributions to the plan are tax deductible. 

  • Earnings on investments accumulate tax-deferred, allowing 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. Some employers my be eligible for tax credits upon establishing a retirement plan. ​

​In addition, sponsoring one or more qualified retirement plans offers the following advantages:


  • Attract experienced employees in a very competitive job market: Retirement plans have become a key part of the total compensation package.

  • Retain and motivate good employees: A retirement plan can help you maintain key employees and reduce turnover.

  • Help employees save for their future since Social Security retirement benefits alone will be an inadequate source to support a reasonable lifestyle for most retirees.

  • Plan assets are protected from creditors.

  • Business owners can make up for lost time by sponsoring qualified plans that provide stakeholders with larger employer contributions.

Employers can choose between two basic types of retirement plans: defined contribution and defined benefit. Both a defined benefit and defined contribution plan may be sponsored to maximize benefits. Listed below are links to descriptions and illustrations of the most popular types of plans available.

Retirement Plans Overview


6530 N. 16th St.

Phoenix, AZ 85016-1306

Telephone: 602-944-1515

Email: info@mgks.com



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