Employee benefits are an important factor to any business in hiring and
retaining a good work force. Every Illinois business needs to periodically
review their employee pension, retirement and profit sharing benefit plans to
ensure that this major expense continues to offer the highest quality benefits
for your employees.
Click on a link below to learn more.
Retirement Plans & Profit Sharing Plans
Profit sharing plans offer the most flexibility when it comes to making
contributions. Company contributions may be determined by a formula written
into your plan or at the discretion of your board of directors or other governing
body.

You can provide that yearly contributions will equal a certain percentage of
profits. If the company makes no profit, no contribution is required that year.
You can provide that contributions be made only if profits exceed specified
amounts or you can let your board of directors review the company's financial
position each year and make plan contributions at its discretion.
The amount of benefits an employee will receive from a profit sharing plan
depends on several factors. Since most company contributions are
dependent on profitability, a profit sharing plan can be a strong incentive for
employees to perform well. Other factors include the plan's investment
performance, the number of years an employee has participated in the plan,
and the amounts fortified by employees who leave before becoming entitled
to the full value of their accounts.
Profit Sharing Plans include:
Defined Benefit Pension Plans
Savings Incentive Match Plan (SIMPLE)
Simple Employee Pensions (SEP's)
Employee Stock Ownership Plans (ESOP's)
Click on the link below to fill out a contact form to receive additional
information on a Profit Sharing Plan that will be right for your Chicago, Illinois
area business. Or speak with one of our Business Employee Benefits Planning
specialists toll free at (877) 232-9899 to discuss the features.
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A retirement plan that allows employees in private companies to make contributions of pre-tax
dollars to a company pool that is then invested in stocks, bonds, or money markets.
The employee decides how much money to enter into the 401K plan, which makes the employee
responsible for his or her own future. Any earnings in your 401K account grow tax deferred. Since
earnings are not taxed until they are withdrawn there are more real dollars working in your
investments.
A typical 401K plan provides the employee with a number of different investment options, allowing
them to be as conservative or as bold with their savings as they want. Employees also have the
ability to "roll over" or transfer without penalty, their savings if they decide to leave their current
employer for a new job. Employers may provide "matching funds," meaning the employer puts in a
percentage of what the employee already added to their 401K plan. A typical employer will match
the contribution made by the employee to the 401K plan up to 6% of their gross income, assuming
the employee chooses to contribute that much into the plan.
Click on the link below to fill out a contact form to receive additional information on retirement
plans that will be right for your Chicago, Illinois area business. Or speak with one of our Business
Employee Benefits Planning specialists toll free at (877) 232-9899 to discuss the features.
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Because the responsibility of funding the SIMPLE IRA is shared between the employer and
employee, the start-up and maintenance costs for SIMPLE IRAs are very low compared to
qualified plans
A "Savings Incentive Match Plan for Employees" or SIMPLE IRA is a retirement plan that may be
established by employers, including self-employed individuals (sole proprietorships and
partnerships). A SIMPLE IRA allows eligible employees to set aside part of their pre-tax
compensation as a contribution to the plan and defer the tax on the money until it is distributed to
them.
Like other employer plans, the SIMPLE IRA allows employers a tax-deduction for contributions
they make to the SIMPLE IRA plan. The employee's contributions to the SIMPLE IRA are not
taxed, but distributions are taxed. The tax and penalty treatment applicable to distributions from a
SIMPLE IRA is determined by the owner's age at the time of distribution. Contributions to
SIMPLE IRAs are immediately 100% vested, and the owner of the SIMPLE IRA directs the
investments.
Click on the link below to fill out a contact form to receive additional information on a SIMPLE IRA
retirement plan that will be right for your Chicago, Illinois area business. Or speak with one of our
Business Employee Benefits Planning specialists toll free at (877) 232-9899 to discuss the features.
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The SEP is an IRA-based plan to which employers may make tax-deductible contributions on
behalf of eligible employees. The employer is allowed a tax deduction for plan contributions, which
are made to each eligible employees' SEP IRA on a discretionary basis. Employees do not pay
taxes on SEP contributions, but the contributions are taxed when the employee receives a
distribution from the SEP IRA.

Any employee that is eligible to participate in their employer's SEP plan must establish a Traditional
IRA to which the employer will deposit SEP contributions. SEP contributions become Traditional
IRA assets and are subject to many of the Traditional IRA rules, including the following:

Any employer with one or more employees may establish a SEP Plan. This includes sole
proprietorships, partnerships, corporations, and non-profit organizations.

Contributions to SEP IRAs are immediately 100% vested.
Click on the link below to fill out a contact form to receive additional information on a SEP pension
plan that will be right for your Chicago, Illinois area business. Or speak with one of our Business
Employee Benefits Planning specialists toll free at (877) 232-9899 to discuss the features.
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A 403B retirement plan is a retirement plan for civil government, university, and not-for-profit
employees. It has the same characteristics and benefits of a standard 401K.
Most 403B retirement plans are funded by employee only contributions. Employee contributions are
tax deductible, tax deferred while inside the plan, and taxable as ordinary income upon distribution.
Contributions to 403B retirement plans generally take one of the following forms:
3. the employee makes contributions and the employer makes a matching contribution.
1. only employees make contributions through a salary-reduction agreement
2. only the employer makes contributions
Every dollar contributed to a 403B retirement plan is tax deferred. Your gross income is reduced by
the amount of contribution to the plan and this will lower your current federal income tax liability.
There is no current tax within the 403B retirement plan on gains, dividends and interest income.
Tax deductible contributions can only come from salary deductions and can only be placed into 403B
retirement plans offered through an employer.
By law, employee investment in a 403B is limited to investing in mutual funds, variable annuities and
fixed annuities. As of 2005, employees can deduct 100% of salary up to $14,000 and place those
funds into a 403B.

A $4000 catch up contribution provision is available for individuals over 50 years of age during 2005.
An additional catch-up provision is available for participants that did not participate in the 403B plan
earlier, and is subject to length of employment rules.
Investing in stocks, bonds, mutual funds and variable annuities does not guarantee a profit. All of
these investments can lose money. Stocks, bonds, mutual funds and variable annuities are not
FDIC insured.
Click on the link below to fill out a contact form to receive additional information on a 403B
retirement plan that will be right for your Chicago, Illinois area business. Or speak with one of our
Business Employee Benefits Planning specialists toll free at (877) 232-9899 to discuss the features.
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regarding your insurance and financial needs should be discussed with a licensed insurance
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Chicago, Illinois area insurance agency
Akey Financial Services
40w 148 Campton Crossing Drive
Suite A
St. Charles, Illinois 60175
Kane County, IL
(630) 232-9811
Toll Free: 877-232-9899
Fax: (630) 232-9829
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