Under a defined contribution plan, the contribution that the company will make to the plan and how the contribution will be allocated among the eligible employees is defined.
+ Profit Sharing Plans
The profit sharing plan is generally the most flexible qualified plan that is available. Company contributions to a profit sharing plan are usually made on a discretionary basis. Each year the employer decides the amount, if any, to be contributed to the plan.
+ 401(k) Plans
More and more employees view 401(k) plans as a valuable benefit which has made them the most popular type of retirement plan today. Employees can voluntarily elect to make pre-tax contributions through payroll deductions up to an annual maximum limit.
+ 401(k) Safe Harbor Plans
The plan may be designed to satisfy "401(k) Safe Harbor" requirements which can eliminate nondiscrimination testing. The benefit of eliminating the testing is that Highly Compensated Employees can defer up to the annual limit without concern for how much the Non-Highly Compensated Employees defer.
+ New Comparability Plans
New comparability plans, sometimes referred to as "cross-tested plans," are usually profit sharing plans that are tested for nondiscrimination as though they were defined benefit plans. New comparability plans are generally utilized by small businesses that want to maximize contributions for owners and higher paid employees, while minimizing contributions for all other eligible employees.
“In the past we had been disappointed with our pension plan preparer. We received our 5500 and statements, but not much else. That all changed when we became a client of PRCA. Now, in addition to our filings we have access to knowledgeable advisors that also provide value in our relationship. PRCA is responsive to our questions and works hard to keep our business. They are a good fit for us and we are extremely satisfied.”
