Page 1 Page 2 Page 3 Page 4Plan Types 401(k) Profit Sharing Plans: Employees may contribute on both a pre-tax and after-tax (Roth) basis; employers may match a percentage of the employee’s contribution and /or contribute a discretionary amount that is allocated to all eligible employees, a so called Profit Sharing contribution. Flexible allocation formulas may allow for contributions to be weighted to older, higher paid employees. 403(b) Plans: For non-profit organizations allowing employees to contribute on both a pre-tax and after-tax (Roth) basis; additional employer contributions may be made. Employee Stock Ownership Plans (ESOPs): Very powerful planning tool for business owners as well as an important employee motivational benefit; ESOPs offer unique tax planning opportunities. Defined Benefit Plans: Are designed to provide a specific benefit at retirement. The amount of funding needed to produce the benefit is actuarially determined each year. Cafeteria (Section 125) Plans: Employees choose between cash compensation and other types of fringe benefits. Employees may pay insurance premiums, medical expenses and dependent care expenses with pre- tax dollars. HRAs and HSAs: Health Reimbursement Arrangement (HRA): Employer- funded account-based benefit to help employees pay for some qualified out-of-pocket health expenses defined by the plan. Health Savings Account: HSAs are individual savings accounts that can be used to pay for qualified health care costs with tax-free dollars; may be funded by the employer, the employee or both.