Plan Design & Documentation
We truly enjoy working with our clients and their advisors to develop the best plan design to serve both the client’s business needs as well are their personal objectives. We offer both Defined Contribution Plans and Defined Benefit Plans:
Defined Contribution (DC) Plans
Our most popular defined contribution plan document with several distinct contribution components:
- 401(k) contributions made by payroll deductions at the election of each participant
- Discretionary Matching Contributions to avoid fixed commitments, but offering the opportunity to declare contributions at year end if it suits management’s objectives; and
- A super flexible discretionary Profit Sharing contribution feature known as One Category Per Participant.
Defined Benefit (DB) Plans
Defined Benefit plans are best suited for clients who want to make large annual tax-sheltered contributions; i.e., more than $50,000 per year. We offer two kinds of DB Plans:
- Traditional DB Plans: Traditional DB plans are appropriate for very small employers such as sole proprietors with no employees. This is because the value/cost of benefits relate directly to a participant’s age. As a result, two equally paid employees of different ages will earn benefits at vastly different rates.
- Cash Balance Plans: Cash Balance Plans offer a wonderful opportunity for companies with more than one owner to maximize their tax sheltered benefits. Cash Balance plans are referred to “Hybrid” plans because they offer the benefit of large DB plan contributions, with the straightforward appearance of an individual Defined Contribution account balance.
Combination DB and DC Plans
Clients who want to truly maximize tax sheltered benefits, but who also need flexibility in contributions obligations from one year to another, or between one partner and another, can be best served by a combination of DB and DC plans.
See our description of other client services to learn how we can help you get the greatest value – year in and year out – from any type of plan design.