Qualified Retirement Plan Design, Consultation & Administration
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Plan Types

  • Employees elect to place a portion of their compensation in this tax qualified plan.
  • Maximum individual deferral limit (see plan limits)
  • Catch-up provisions (see plan limits)
  • Required ADP and ACP compliance testing
  • Employees elect to place a portion of their compensation in this tax-qualified plan. All contributions and plan earnings are tax deferred until withdrawn from the plan.
  • No 401(k) Compliance Testing
  • Required Safe Harbor Employer Contribution is satisfied in one of two ways:
  • Non-Elective Contribution: 3% of pay for all eligible employees
  • Matching Contribution: Basic Match equal to 100% match of employee deferrals up to the first 3% of pay and 50% match on the next 2% of pay, or Enhanced Match equal to 100% match of employee deferrals up to 4% of pay
  • Contributions are generally made from the employer's profits, either as a discretionary amount or a specified percentage, although the employer may also contribute if no profits are present.
  • Maximizes Contributions for Owner(s)
  • Employees Divided into Predefined Groups
  • Group 1: Owner(s)
  • Group 2: All other employees
  • Example of Profit Sharing Allocation
  • Group 1: 20% of Pay
  • Group 2: 5% of Pay
  • Maximizes Benefits for Older Employees
  • Requires an Annual Employer Contribution Maximum Annual Benefit of (see plan limits) Deduction Limit may exceed 25% of Payroll
  • Can generate significantly higher deductions in certain circumstances than traditional Defined Contribution Plans




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