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QUALIFIED RETIREMENT PLANS
Your Comprehensive Guide to Growing Your Business Through Tax-Advantaged Retirement Solutions
The Solarus Insurance Agency Advanced Market's Team has developed this Producer Training Playbook to help you identify and capitalize on opportunities within the Qualified Retirement Plans market. This guide equips financial professionals with in-depth knowledge of both defined benefit plans (including Cash Balance and Traditional Pension) and defined contribution plans (such as 401(k), Profit Sharing, and Money Purchase plans). You'll master the IRS and ERISA requirements that maintain a plan's qualified status while learning strategic methods to identify ideal prospects among business owners seeking tax advantages and employee retention tools. The playbook includes customizable client presentations, prospect evaluation worksheets, and case studies demonstrating how qualified plans have helped business owners reduce taxable income while building substantial retirement assets. Leverage these resources to transform retirement planning discussions into expanded business opportunities with both existing clients and new prospects.
Qualified Retirement Plans

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Solarus Insurance Agency - Qualified Retirement Plans

- Secure Your Future: Explore Retirement Plans!

What are Qualified Plans?
The Advantages of Qualified Plans
Employers offer qualified plans to secure substantial tax advantages, including immediate tax deductions for contributions (up to 25% of eligible payroll), tax-deferred growth on plan assets, and potential tax credits of up to $5,000 for plan startup costs. These plans provide comprehensive retirement benefits for business owners and employees alike, with contribution limits reaching $66,000 annually for defined contribution plans in 2023. When life insurance is purchased within the plan, it establishes valuable death benefit protection with premiums that may be tax-deductible to the business. A strategically designed qualified plan gives business owners a competitive edge in attracting and retaining top talent in today's challenging labor market, with studies showing that 88% of employees consider retirement benefits a critical factor when evaluating job offers. For business owners specifically, these plans can facilitate significant wealth accumulation through higher contribution limits compared to non-qualified alternatives.
What is a Qualified Plan?
A qualified plan is an employer-sponsored retirement plan that meets specific requirements established by Section 401(a) of the Internal Revenue Code and ERISA (Employee Retirement Income Security Act of 1974). These plans receive preferential tax treatment, including tax-deferred growth on investments and potential tax deductions for employer contributions. To maintain qualified status, plans must adhere to strict guidelines including: minimum participation requirements (covering at least 70% of non-highly compensated employees), vesting schedules (either 100% after 3 years or 20% after 2 years with 20% increments thereafter), annual contribution limits ($22,500 employee deferral for 401(k) plans in 2023, plus $7,500 catch-up for those over 50), and non-discrimination testing (ADP/ACP tests ensuring highly compensated employees don't disproportionately benefit). Plans must also provide Summary Plan Descriptions to all participants, file Form 5500 annually, and undergo periodic compliance reviews to prevent disqualification.
Eligible Entities for Qualified Plans
C Corporations
Can establish diverse qualified plans including 401(k), profit-sharing, and defined benefit plans. Contribution limits reach up to $66,000 annually (2023) with additional catch-up provisions. The corporation receives immediate tax deductions while employees enjoy tax-deferred growth until retirement, typically age 59½. Fortune 500 companies often utilize these structures for executive compensation packages.
S Corporations
Shareholder-employees can contribute up to 25% of their W-2 wages to plans like SIMPLE IRAs ($14,000 limit) or SEP IRAs (up to $66,000). S Corps avoid the double taxation of C Corps while still allowing business owners to maximize retirement savings. Professional service firms like medical practices commonly use this structure to optimize owner retirement benefits.
Partnerships
Partners can establish Solo 401(k)s or defined benefit plans with contributions calculated on net self-employment income (up to 20% after SE tax deduction). Law firms and accounting partnerships typically contribute $30,000-$60,000 annually per partner. Vesting schedules can be customized to incentivize long-term partnership commitments while meeting ERISA non-discrimination requirements.
Sole Proprietorships
Self-employed individuals can function as both employer and employee with SEP IRAs (allowing up to 25% of net earnings) or Solo 401(k)s (permitting elective deferrals plus profit-sharing up to $66,000 combined). Consultants earning $200,000 could potentially shelter over $50,000 annually from immediate taxation. Simplified administration without discrimination testing makes these particularly attractive.
LLCs
Single-member LLCs taxed as sole proprietorships can use SEP IRAs or Solo 401(k)s, while multi-member LLCs taxed as partnerships utilize partnership rules with K-1 income determining contribution limits. LLCs electing S Corp taxation follow W-2 wage-based calculations. Technology startups often leverage these flexible structures to attract talent with robust retirement packages while maintaining tax efficiency.
Non-Profit Organizations
501(c)(3) entities can offer 403(b) plans with employee contributions up to $22,500 (2023) plus employer matching. Other non-profits typically establish 401(k) plans with similar limits. Both plan types allow for additional catch-up contributions of $7,500 for employees over 50. Universities commonly provide 10-15% employer contributions regardless of employee participation, while hospitals often match up to 5% of employee contributions.
Watch our detailed walkthrough on how different business entities can optimize their qualified retirement plans
How Qualified Plans Work
Plan Establishment
The employer adopts a formal written plan document that satisfies IRC Section 401(a) requirements, including non-discrimination testing, minimum coverage standards, and vesting schedules. This typically requires assistance from a Third-Party Administrator (TPA) and ERISA attorney.
Employer Contributions
Businesses can contribute up to 25% of eligible compensation (up to $66,000 in 2023) for defined contribution plans. C Corporations receive immediate corporate tax deductions, while pass-through entities like S Corps and LLCs obtain deductions that flow to owners' personal returns.
Tax-Advantaged Growth
Assets can be invested in mutual funds, ETFs, stocks, and bonds through custodial accounts. A $100,000 initial investment growing at 7% annually would reach $196,715 in 10 years without annual taxation, compared to approximately $171,818 in a taxable account (assuming 24% tax bracket).
Retirement Distributions
Beginning at age 59½ (or 55 if separated from service), participants can access funds through lump-sum distributions, periodic payments, or rollovers to IRAs. Required Minimum Distributions (RMDs) begin at age 73. Business owners can utilize strategies like Net Unrealized Appreciation (NUA) to optimize tax treatment.
Learn how our qualified plan expertise can help you navigate these complex regulations while maximizing tax benefits for your specific business entity.
Target Market
Business Owners
Entrepreneurs with $500K+ annual revenue seeking up to $343,000 in annual tax-deductible retirement contributions, significant wealth accumulation opportunities, and guaranteed retirement income streams while maintaining business control
Professional Practices
Medical specialists, law firm partners, and established CPAs with high income variability requiring cash balance plans and defined benefit solutions that permit $150K-$300K annual contributions while addressing partnership dynamics and succession planning
Established Companies
Mid-market businesses ($5M-$50M revenue) with 25+ employees committed to reducing 35% turnover rates, competing with corporate benefit packages, and providing owners with preferential plan designs that satisfy non-discrimination testing while optimizing tax efficiency
Discover how our qualified retirement plans can address your specific industry needs and organizational goals with customized solutions that maximize tax advantages while ensuring full compliance with ERISA regulations.
Implementation Process
Discovery
60-minute consultation analyzing your business structure, current financial position, employee demographics, and specific retirement objectives to identify optimal tax-advantaged solutions
Plan Design
Custom blueprint development featuring precise contribution formulas, vesting schedules, and investment options that align with your business goals while maximizing owner benefits
Documentation
Comprehensive preparation of IRS-compliant plan documents, summary plan descriptions, adoption agreements, and all required Form 5500 filings with our dedicated compliance team
Launch
Full-service implementation including employee enrollment meetings, investment education, quarterly performance reviews, and annual plan optimization consultations
Contact our retirement specialists at (888) 555-7890 or [email protected] to schedule your complimentary implementation assessment
Comprehensive Resources
Gain immediate access to our extensive library of 50+ pre-approved marketing materials, including client-ready brochures, plan comparison guides, and tax advantage summaries. Our resource center features customizable PowerPoint presentations for both discovery meetings and plan design consultations, plus interactive calculators that demonstrate contribution limits, tax savings projections, and retirement income scenarios. Download compliance-ready documentation including prototype plan documents, IRS submission forms, and participant disclosure templates—all updated quarterly to reflect the latest regulatory changes.
Video Training Library
Duration: 4:15
Access our comprehensive video training series designed to equip advisors with essential knowledge for implementing qualified retirement plans. These on-demand videos cover regulatory updates, implementation strategies, and client communication techniques to enhance your advisory practice.
Explore All Resources in Our Advisor Portal →
Educational Videos
Qualified Plan Overview
Implementation Strategies
Duration: 1:06
Master our 5-step approach for seamlessly integrating qualified plans into your clients' financial portfolios. Learn how to overcome specific obstacles like nondiscrimination testing, address top-heavy plan concerns, and optimize plan design through strategic employee classifications. Our video demonstrates how proper implementation can result in 30-40% tax savings while maintaining 90%+ employee satisfaction rates.
Connect With Our Experts
Watch our team explain how we can support your qualified plan needs:
How to Reach the Advanced Markets Team
Our dedicated Advanced Markets Team, comprised of ERISA attorneys, CPAs, and retirement plan specialists with over 50 years of combined experience, stands ready to address your inquiries about qualified retirement plans. We provide tailored guidance for Cash Balance Plans, 401(k) Profit Sharing, Defined Benefit Plans, and Solo 401(k) solutions customized for your clients' specific needs.
Direct line: (800) 555-7890, available Monday-Friday, 8:00 AM - 6:00 PM EST
Available Support Services
Our specialized team delivers comprehensive support throughout your client engagement process, including:
  • Customized plan design consultation with side-by-side comparisons of up to three plan options
  • Step-by-step implementation guidance with dedicated onboarding specialists
  • Educational webinars and one-on-one virtual training sessions every Tuesday at 2:00 PM EST
  • Strategic marketing materials including client-ready presentations, tax savings calculators, and case study templates to help you communicate complex concepts effectively
  • Annual plan review services to ensure ongoing compliance and optimization
Legal and Tax Disclaimer
The companies of Solarus Insurance Agency and their representatives do not provide tax or legal advice. The information provided is general in nature and may not apply to all circumstances. Tax laws are complex and subject to change. Required minimum distributions, contribution limits, and tax deduction rules vary by plan type and participant status. We strongly recommend that you advise your clients to consult with qualified tax professionals and legal advisors regarding their specific circumstances before making any financial decisions. Solarus Insurance Agency is not responsible for any tax consequences resulting from the implementation of qualified plans based on this information.