For Partners and Owners

Qualified Retirement Plans

Trust Company of Illinois’ qualified retirement plans optimize savings, tax benefits, and asset protection for owners of small- to mid-size businesses and professional firms.

Imagine increasing your contribution to your retirement fund and benefit from doing so. A well-designed retirement plan makes it possible, enabling highly-compensated owners and employees to contribute at a relatively high rate on a pre-tax and/or Roth basis – as much as $50,000 to $300,000 per year. Trust Company of Illinois’ retirement services team will help you navigate the ocean of related laws and design a plan that will benefit your employees as well as your business.

We do this multiple ways. One way is through profit sharing contributions, usually in addition to 401(k) contributions. However, it's important to carefully allocate those dollars. Using an age-based allocation method, owners can increase their total contributions to as much as $53,000 (or $59,000 if over age 50) per partner while minimizing the amount contributed for employees. This typically works best when owners are older than the majority of employees.

 

Win – Win

Contributing to a qualified retirement plan has many benefits, including tax deductions, accelerated savings, and asset protection. When the plan works for the owners, more can be contributed for their employees.