Independent Planning Benefits Corporation has assisted employers in finding quality 401(k) and profit sharing programs that include numerous investment options, cost efficient administration, timely and accurate reporting, state-of-the art communication and on-line access to personal records and investment performance.

The 401(k) retirement plan allows employees to save and invest for their own retirement. Through a 401(k), an employee authorizes their employer to deduct a certain amount of money from their paycheck before taxes are calculated, and to invest it in the 401(k) plan. The money is invested in investment options that are chosen from the company's available investment options in the plan.

A Profit Sharing retirement plan allows an employer to share profits of the company with their employees by contributing a percentage of the company's annual profits to the plan. The amount of the contribution can change each year, or may not be made at all, depending on the company's circumstances.

A 401(k) plan is a feature of a profit sharing plan. Unlike a profit sharing plan, employees can contribute a percentage of their own salaries, up to certain legal limits, to the plan for retirement savings. It is also common that the employer contributes money to its employees' accounts in the form of "company match" contributions, usually as an incentive to get employees to participate in the plan. Current income taxes are deferred on both employer and employee contributions and all investment earnings until the money is withdrawn from the plan.

Access to 401(k) money is restricted because it's supposed to be for retirement. If moneys are withdrawn before age 59 1/2, federal income tax on the amount withdrawn is due unless they are rolled over into another qualified plan. In most cases an additional 10% early withdrawal penalty is due. Certain hardship withdrawals may not be subject to penalties and federal income taxes.