Can offer higher benefits to top management with lesser tenure. Employer can maximize tax deduction. Salary deferrals by employee are pre-tax. Employer contribution is discretionary, not required. Employer can elect to make matching contributions.
Employer is entitled to a tax deduction for the amount of the contribution.
Self-directed or managed by an investment officer within participant s guidelines. Low administrative costs. Flexibility to adjust contribution levels on an annual basis. Top of Page IRA Rollover Taxes deferred on income produced by the lump sum. Taxes deferred until distributions begin.