A 401(k) is a retirement savings instrument that enables contributors to place money aside without facing tax liabilities. This vehicle is typically offered through employers and might include matching funds paid on an employee’s behalf by the employer. Contributions to a 401(k) are tax deferred. This means that income taxes will not be charged on money placed in these accounts until they are withdrawn. This savings vehicle can gain earnings in addition to contributions if it is attached to such things as mutual funds, stocks, bonds or money market accounts.
For more information, go to http://www.irs.gov/retirement/article/0,,id=108942,00.html
Defined benefit plans are qualified employer-sponsored retirement plans. Like other qualified plans, they offer tax incentives both to employers and to participating employees. For example, your employer can generally deduct contributions made to the plan. And you generally won't owe tax on those contributions until you begin receiving distributions from the plan (usually during retirement). However, these tax incentives come with strings attached--all qualified plans, including defined benefit plans, must comply with a complex set of rules under the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code.
For more information, http://www.irs.gov/retirement/article/0,,id=108950,00.html
Profit sharing plans offer both design flexibility and discretion as to making contributions. Company contributions are determined by the plan sponsor and can be allocated in a number of ways. If the company makes little or no profit that year, no contribution is required, although low profits don’t restrict the contribution level. A profit sharing plan can include an option allowing the company to make contributions even if the company has no profit.
For more information, http://www.irs.gov/retirement/article/0,,id=108948,00.html
Floor Offset Plan is a special type of Defined Benefit plan where a minimum benefit guarantee, or floor,” is provided from a Defined Benefit and Defined Contribution plan combined. Often, these plans can be designed so that the Defined Benefit plan benefits only the business owner and/or other targeted employees and can be combined with an existing 401(k) plan. We provide all the same support services for the Defined Benefit portion of these plans as are described under Defined Benefit Plans, plus we prepare all the testing that is required to demonstrate that the combined plans comply with all legal and regulatory requirements.
For more information, http://www.bls.gov/ncs/ebs/peopleboxfloorpl.htm
For Sample of Floor Off-Set (or Combo Plan) click here