Future Planning Associates, Inc.


Types of Plans

401(k) Plan

This well-known, specialized type of Profit Sharing plan allows your employees to contribute on a pre-tax (or after-tax “Roth”) basis. Employers may or may not match a percentage of the employee contribution. Employer Discretionary Profit Sharing contributions may also be made.

Profit Sharing

This type of plan allows for the most flexible, discretionary contribution each year. A “New Comparability” Profit Sharing plan may allow contributions to be heavily weighted toward older, higher paid owners/ employees.

Employee Stock Ownership Plans

(ESOPs) can be a very powerful planning tool for business owners as well as an important employee motivational benefit. ESOPs offer unique tax planning opportunities.

Defined Benefit

These traditional plans are designed to provide a specific benefit at retirement. The amount of funding needed to produce the benefit is actuarially determined each year. Defined Benefit Plans can typically allow the largest contribution/ benefits of any Qualified Plan Design.

Cash Balance

A cash balance plan is a Defined Benefit plan, funded solely by the Employer. The plan maintains hypothetical individual participant accounts for each participant.

Money Purchase/Target Benefit

These plans are designed to provide a specific contribution for each eligible employee each year, at a fixed contribution formula.

Tax Sheltered Annuity (403(b)

Certain tax-exempt organizations may sponsor these programs which permit employees to contribute on a pre-tax (or after-tax “Roth”) basis; the employer may provide matching and discretionary contributions as well.

Section 457

A deferred compensation arrangement for governmental and other tax-exempt entities (457(b)). A select group of management or highly compensated employees may defer compensation under a 457(f) program.

Non-Qualified Executive Deferred Compensation

This kind of plan will permit the employer to provide supplemental retirement benefits to a select group of management or highly compensated employees. These arrangements may also permit deferral of compensation by the executive on an income-discriminatory basis.

Cafeteria/Section 125

Called a “welfare benefit” plan, this plan allows employees to choose between cash compensation and other types of fringe benefits. Employees may pay insurance premiums, out-of-pocket medical expenses and dependent care expenses with pre-tax dollars.

HRAs and HSAs

Health Reimbursement Arrangement (HRA): Tax-Free employer funded account-based benefit to help employees pay for some qualified out-of-pocket health care expenses defined by the plan; may be paired with any health insurance plan; works best with a High Deductible Health Plan.
Health Savings Account (HSA): HSAs are individual savings accounts that can be used to pay for qualified health care expenses with tax-free dollars; may be funded by the employer, the employee or both; must be paired with an HSA eligible High Deductible Health Plan.

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Contact Us

600 Blair Park Road
Suite 331
Williston, VT 05495-0905

phone: (802) 878-6601
fax: (802) 878-9455


Our Affiliations

ASPPA Member

Vermont Bankers Association 

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