Through Karp Capital Management, you can access resources from a number of large brokerage firms, while still receiving personal attention to address your unique needs. As a fee-only investment advisor, Karp Capital can deliver a wide range of financial products and services provided by different financial institutions to help meet your goals—no concealed biases, no hidden opinions.

With expertise in tax-deferred retirement plans and qualified and non-qualified plans, Karp Capital can help your business plan, implement, and monitor retirement plans and other employee benefit programs.

We coordinate and provide comprehensive support for all of the components associated with your retirement plan (401k, profit sharing, defined benefit, nonqualified deferred comp). You will receive local, personalized and cost-sensitive attention. Learn more... The Karp Capital Advantage.

Types of Qualified Retirement Plans

A Qualified Retirement Plan is a way for an employer to set aside money dedicated for the retirement needs of employees. The employer receives a tax deduction at the time the money is contributed to the plan, the trust remains tax free, and the employee does not get taxed on the money until he or she takes final distribution, which is designed to be deferred until retirement. Employees also have the option to further defer taxation by either delaying distribution or by rolling their accumulated pension benefits into an IRA.

  • 401(k) — are a type of Profit Sharing Plan, which allow employees to make contributions on their own behalf through salary reduction. Originally these plans were limited to end of the year bonuses. However, the continuous salary deferral method has become much more common. The employer can also make matching or profit sharing contributions to a 401(k) plan. An employee can defer up to 100% of their compensation. Learn More: Individual 401(k) Plan or Corporate 401(k)
  • New Roth 401(k) — Effective 2006 as a new option to give plan participants considerable tax planning flexibility. Contributions through salary deferral are made on an after tax basis with earnings growing tax free and distributions at retirement being tax free with no impact on Social Security benefits. Additionally, employers can elect to make matching contributions.
  • Profit-sharing Plans — are plans to which an employer may make optional contributions of between 0% and 25% of eligible compensation. The company need not be “profitable” to make such a contribution. Contributions are generally allocated as an even percentage of compensation to all eligible employees. However, a more complex allocation structure can be designed, if the demographics work out. These types of plans are called Group Allocation Plans. Learn More: Traditional Profit Sharing vs. Group Allocation and Owners vs. Rank and File Employees
  • Nonqualified Deferred Compensation Plans — are generally provided to executives, directors and consultants to supplement their tax qualified retirement plan and accumulate meaningful retirement benefits that they are unable to receive due to the restrictive limits under traditional tax-qualified profit sharing and pension plans.
  • Defined Benefit Pension Plans — are more traditional plans. Benefits are calculated as monthly payments that begin at retirement. For example, a monthly payment starting at age 65 equal to 50% of average annual compensation, reduced by 2% for each year of service less than 25 years. Investment earnings are not allocated. On the other hand, investment losses are not allocated either. If the trust investments do poorly, the company may have to contribute a "make up" contribution. If the trust investments do well, the contribution may be reduced. Learn More: Adding 401(k) Features and a Defined Benefit Plan
  • 403(b) Plans — operate very much like 401(k) plans for Non-Profit and teaching organizations.
  • 457 Plans — operate very much like 401(k) plans for local governmental (cities and counties) and quasi-governmental organizations (such as water districts).