Types of Plans we design and administer:
Provides the highest deductible contribution to older and higher paid employees. Contributions are determined actuarially based on the employees’ ages, projected retirement ages and compensation. Annual contributions can be well in excess of 25% of pay and can be over $200,000 per year per participant. Best for individuals starting to save for retirement late in age (45+) and with substantial saving potential.
Provides flexibility to the employer. Contributions can vary year to year from $0 to 25% of total plan payroll. Using a traditional allocation method the contribution is greater for the higher compensated participants. Maximum annual contribution per participant is $52,000 (2014).
Provides all the flexibility of a traditional Profit Sharing Plan (the contributions can vary year to year from $0 to 25% of total plan payroll), but using the cross tested allocation method provides greater contributions to the older, higher paid participants. In addition, the cross tested allocation method allows different levels of contributions to different groups of employees, as long as the anti-discrimination tests are passed. Maximum annual contribution per participant is $52,000 (2014).
Allows a Profit Sharing Plan (either with the traditional allocation method or the cross tested allocation method) to accept participants’ salary deferrals. The participant can defer salary and defer the taxation of these contributions. A 401(k) Plan can be a traditional 401(k) Plan subject to the ADP and ACP anti-discrimination tests, or a Safe Harbor 401(k) Plan that can forego some of the anti-discrimination testing. Designed correctly, a 401(k) plan can be very cost effective for the employer. Maximum annual contribution per participant is $52,000 (2014) or $57,500 (2014) if over 50 years old.