Employee benefits are an important factor to any business in hiring and retaining a good work force. Every New York, Connecticut, or New
Jersey business needs to periodically review their employee pension, retirement and profit sharing benefit plans to ensure that this major
expense continues to offer the highest quality benefits for your employees.
Profit sharing plans offer the most flexibility when it comes to making contributions. Company contributions may be determined by a formula
written into your plan or at the discretion of your board of directors or other governing body.

You can provide that yearly contributions will equal a certain percentage of profits. If the company makes no profit, no contribution is required
that year. You can provide that contributions be made only if profits exceed specified amounts or you can let your board of directors review
the company's financial position each year and make plan contributions at its discretion.
The amount of benefits an employee will receive from a profit sharing plan depends on several factors. Since most company contributions
are dependent on profitability, a profit sharing plan can be a strong incentive for employees to perform well. Other factors include the plan's
investment performance, the number of years an employee has participated in the plan, and the amounts fortified by employees who leave
before becoming entitled to the full value of their accounts.
Profit Sharing Plans include:
Defined Benefit Pension Plans
Savings Incentive Match Plan (SIMPLE)
Simple Employee Pensions (SEP's)
Employee Stock Ownership Plans (ESOP's)
Click on the link below to fill out a contact form to receive additional information on a Profit Sharing Plan that will be right for your business.
Or speak with our Employee Benefits specialist toll free at 1-800-498-1819 to discuss the features.
A Defined Contribution Plan does not promise a specific amount of benefit at retirement. Employees, employers, or both, contribute to these
plans. Most often the contribution will be a percentage of compensation up to a certain dollar amount. Depending on the plan type, the
contributions may or may not be made each year, but they are invested on the employee's behalf, and the benefits paid to employees are
based on contributions and any earnings or loss. For defined contribution plans, employers are not required to make up for any loss on
investments. A defined contribution plan can be a profit-sharing plan, an employee stock ownership plan, a 401(k) plan, or a money purchase
pension plan.
Click on the link below to fill out a contact form to receive additional information on a Defined Benefit Plan or Defined Contribution Plan that
will be right for your business. Or speak with our Employee Benefits specialist toll free at 1-800-498-1819 to discuss the features.
"Your Local New York Employye Benefits Specialist!"
We offer reliable and experienced New York employee benefits services to businesses in the following New York counties and cities: Westchester County, Putnam
County, Orange County, Rockland County, Somers, Port Chester, Harrison, Mamaroneck, Larchmont, New Rochelle, Yonkers, White Plains, Rye Brook, Scarsdale, Rye,
Ardsley, Hartsdale, Bronxville, Mt. Vernon, Mount Vernon, Irvington, Valhalla, Elmsford, Dobbs Ferry, Hastings on Hudson, Greenburgh, Tarrytown, Sleepy Hollow,
Hawthorne, Scarborough, Thornwood, Briarcliff Manor, Ossining, Harmon, Montrose, Crugers, Buchanan, Peekskill, Millwood, Pleasantville, Armonk, Chappaqua, North
Castle, Mt. Kisco, Bedford, Pound Ridge, Bedford Hills, Cross River, South Salem, Yorktown Heights, Goldens Bridge, Amawalk, Yorktown, Katonah, Salem Center,
North Salem, Croton Falls, Jefferson Valley, Shrub Oak, Palisades, Sparkill, Tappan, Orangeburg, Pearl River, West Nyack, New City, Nanuet, Chestnut Ridge,
Montebello, Suffern, Monsey, Spring Valley, Congers, Nyack, Rockland Lake, Wesley Hills, New Hempstead, Pomona, Sloatsburg, Ramapo, Hilburn, Willow Grove, Mt.
Ivy, Thiells, Tomkins Cove, Ladentown, Haverstraw, Stony Point, Tomkins Cove, West Haverstraw, Bear Mountain, Jones Point, Newburgh, Middletown, Brewster, New
York City, and Poughkeepsie, NY.
Click on a link below to learn more.
Retirement Plans & Profit Sharing Plans
A retirement plan that allows employees in private companies to make contributions of pre-tax dollars to a company pool that is then invested
in stocks, bonds, or money markets.
The employee decides how much money to enter into the 401K plan, which makes the employee responsible for his or her own future. Any
earnings in your 401K account grow tax deferred. Since earnings are not taxed until they are withdrawn there are more real dollars working in
your investments.
A typical 401K plan provides the employee with a number of different investment options, allowing them to be as conservative or as bold with
their savings as they want. Employees also have the ability to "roll over" or transfer without penalty, their savings if they decide to leave their
current employer for a new job. Employers may provide "matching funds," meaning the employer puts in a percentage of what the employee
already added to their 401K plan. A typical employer will match the contribution made by the employee to the 401K plan up to 6% of their
gross income, assuming the employee chooses to contribute that much into the plan.
A "Savings Incentive Match Plan for Employees" or SIMPLE IRA is a retirement plan that may be established by employers, including self
employed individuals (sole proprietorships and partnerships). A SIMPLE IRA allows eligible employees to set aside part of their pre-tax
compensation as a contribution to the plan and defer the tax on the money until it is distributed to them.

Like other employer plans, the SIMPLE IRA allows employers a tax-deduction for contributions they make to the SIMPLE IRA plan. The
employee's contributions to the SIMPLE IRA are not taxed, but distributions are taxed. The tax and penalty treatment applicable to
distributions from a SIMPLE IRA is determined by the owner's age at the time of distribution. Contributions to SIMPLE IRAs are immediately
100% vested, and the owner of the SIMPLE IRA directs the investments.

Because the responsibility of funding the SIMPLE IRA is shared between the employer and employee, the start-up and maintenance costs for
SIMPLE IRAs are very low compared to qualified plans.
The SEP is an IRA-based plan to which employers may make tax-deductible contributions on behalf of eligible employees. The employer is
allowed a tax deduction for plan contributions, which are made to each eligible employees' SEP IRA on a discretionary basis. Employees do
not pay taxes on SEP contributions, but the contributions are taxed when the employee receives a distribution from the SEP IRA.

Any employee that is eligible to participate in their employer's SEP plan must establish a Traditional IRA to which the employer will deposit
SEP contributions. SEP contributions become Traditional IRA assets and are subject to many of the Traditional IRA rules, including the
following:

Any employer with one or more employees may establish a SEP Plan. This includes sole proprietorships, partnerships, corporations, and
non-profit organizations.

Contributions to SEP IRAs are immediately 100% vested.
Employees' retirement benefits are predetermined by his or her compensation, years of service, and age. A Defined Benefit Plan may
determine that upon retirement an employee will receive 1% of his/her average salary for the last five years of employment for every year of
service with the employer or the plan may state the promised benefit as an exact dollar amount, such as $100 per month at retirement.

The employer will make contributions that, based on actuarial assumptions including projected growth of investments, are required to reach
the predetermined retirement benefit. Should the performance of plan investments fall below the projected amount, the employer is required
to make additional contributions to make up for the shortfall.

The contribution limits for Defined Benefit Plans are significantly higher than the limits of defined contribution plans. (See below)
Profit Sharing Information Contact Form
Click on the link below to fill out a contact form to receive additional information on a 401K that will be right for your business. Or speak with
our Employee Benefits specialist toll free at 1-800-498-1819 to discuss the features.
401K Information Contact Form
Click on the link below to fill out a contact form to receive additional information on a SIMPLE IRA that will be right for your business. Or
speak with our Employee Benefits specialist toll free at 1-800-498-1819 to discuss the features.
SIMPLE IRA Information Contact Form
Click on the link below to fill out a contact form to receive additional information on a SEP that will be right for your business. Or speak with
our Employee Benefits specialist toll free at 1-800-498-1819 to discuss the features.
SEP or Simplified Employee Pension Plan Information Contact Form
DIRECT
ACCESS
GROUP
BENEFITS,
INC.
Employee Benefits Specialists
Call Us 1-800-498-1819
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