01.Core Concepts

• Employer contributions are not subject to federal income tax or payroll tax • Employee contributions are not subject to federal income tax until withdrawn • Employee contributions are subject to payroll tax • Tax-deferred growth • Special income tax averaging and NUA for some people and plans • Employee Retirement Income Security Act of 1974 (ERISA) protection • Timing of income tax deduction • Small business tax credit • Retirement plans as part of a compensation package