How should an existing qualified plan be evaluated?
*Is the Plan Design Still Appropriate? The data and objective that influenced the original plan selections may not currently be valid. The ability to contribute, the number and type of employees, as well as the incomes and personal needs of the business managing are all variables and might have changed since the plan’s inception. In order to determine which type of plan is best suited to the needs of the business and its management, the following is a partial list of what should be considered: -overall financial plans -investment objectives -the amount the business is able to contribute annually -the flexibility needed to change the contributions -the ages of the key employees *Does the plan provide the maximum income tax relief? Based on the cash flow of the business and the retirement or tax-shelter needs of the management, contributions may be increased by adding plans, changing plans, amending plan formulas, or adjusting options. *Do the business owners have different needs and inv
