Since the beginning RK Asset Management has been involved in helping small and medium size businesses establish company retirement plans. We feel that the entrepreneur, executive and employee at some time in the future should have an exit strategy from employment to retirement. With social security being less of a factor for ones retirement income, a qualified plan will be the key component for ones future income. We have in depth knowledge from the 401k market to the 412i defined benefit market. Our job is to determine your goals when we recommend what type of plan to establish. The following types of plans are what RK Asset Management has experience establishing. Our company sizes range from 1 employee to 200 employees.

SEP IRA

The Sep IRA is the cheapest and easiest plan to set up for any small employer. SEP plans are more popular among self employed individuals because they can put a large percentage of income away. Right now the max contribution into a SEP plan is 25% of income up to $44,000 for 2006. 100% of the money contributed is vested immediately for all eligible employees.

SIMPLE IRA

The SIMPLE IRA is more popular among small employers who have fewer than 15 employees and want to offer their employees a cost effective retirement plan. The SIMPLE is funded by both the employer and employee. In 2004 an employee can put dollar for dollar up to $9000 of earned income away. The employer can match the employee’s contribution dollar for dollar up to 3% of earned income. A catch up provision exist for employee over 50.

Individual 401(k)

The owner only or individual 401(k) is a new type of plan that many self employed individuals are just staring to learn about. It is basically a 401(k) plan with out the administrative cost. Similar to a SIMPLE IRA there can be both employee and employer contributions. In 2004 the max employee contribution is $15,000 and employer contribution is 25% of income/salary. The combined total is not to exceed $44,000 a year. The ideal candidate is one who is self employed with income less then $160,000 and looking to maximize their deduction. An added advantage to the plan is the ability to take loans prior to retirement. A catch up provision exist for employee’s over 50, which allows for an additional $5000 contribution.

Traditional 401(k) profit sharing

The traditional 401k Plan is the most popular plan used by employers in America today. A 401k Plan allows employees to make payroll deferrals dollar for dollar up to $15,000 a year of their earned income. The employer or profit sharing contribution is normally done on some type of match with the employee. For example, for every dollar an employee puts into the plan the employer may put in a dollar as well. Vesting schedule are use to keep employees from departing the company early and taking the matching funds. An employer has added fiduciary responsibility when establishing a retirement plan for their employees. RK Asset Management takes pride in having the in depth knowledge on how to help employers through that fiduciary process.

412i Defined Benefit Plan

The 412(i) plan (also known as a fully insured retirement plan), is a qualified defined benefit plan that allows for tax deductible contributions. The plan is funded with a combination of life insurance and annuity products as required by IRS regulations. A defined benefit plan "defines" how much money or "benefit" you will receive at retirement (IRS maximums apply). To determine this amount, a plan must calculate how much you need to contribute (at an applicable rate of return) to reach that retirement goal. Therefore, with a 412(i) you are allowed to contribute larger amounts to ensure proper funding for your future defined benefit. These larger contribution amounts are calculated using the guaranteed interest rate within the insurance polices, allowing for much higher plan contributions than a standard defined benefit plan or a typical profit sharing 401(k) will allow. RK Asset Management has partnered with the top 412i advisors in the country to provide clients the best solution. Visit www.professionalretirementplans.com today to learn more.