{"id":4775,"date":"2016-04-04T10:47:45","date_gmt":"2016-04-04T15:47:45","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/employment-law-and-human-resources\/types-of-retirement-plans.html"},"modified":"2024-06-06T05:36:41","modified_gmt":"2024-06-06T10:36:41","slug":"types-of-retirement-plans","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/employment-law-and-human-resources\/types-of-retirement-plans.html","title":{"rendered":"Types of Retirement Plans"},"content":{"rendered":"\n
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Types of Retirement Plans<\/h1>\n
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\n By Susan Buckner, J.D.<\/a> | Legally reviewed by Susan Mills Richmond, Esq.<\/a>\n | Last updated\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

Employee benefits are an important part of a small business owner’s business plan. Prospective employees want to know what retirement benefits they can expect when hired by a new company. Any employer can set up a retirement plan for their employees. Once an employer has a plan, they must comply with ERISA<\/a>, which can deter some small businesses from offering plans.<\/p>\r\n

This article discusses the types of pension plans available and the benefits to employers and employees.<\/p>\r\n

Visit FindLaw’s Wages and Benefits page<\/a> for more information.<\/p>\r\n

Qualified Retirement Plans<\/h2>\r\n

A qualified retirement plan is any business-established retirement plan that meets IRS and ERISA<\/a> requirements. Qualified plans are eligible for tax benefits for both the employer and the employee. The employer’s contribution is tax deductible. Employees pay no taxes on their plan contributions until they withdraw the funds.<\/p>\r\n

There are two basic types of qualified plans.<\/p>\r\n