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Once we’ve determined that a pension or profit sharing plan is appropriate and feasible for your company, we’ll help you choose from the following types:

– Defined Benefit Plan .. A plan that is designed to provide participants with a definite benefit at retirement (for example, a monthly benefit of 20% of compensation upon reaching age 65). Contributions under the plan are determined by reference to benefits provided, not on the basis of a percentage of compensation.

– Profit Sharing Plan .. A defined contribution plan under which the employer agrees to make discretionary contributions (usually out of profits). A participant’s retirement benefits are based on the amount in his or her individual account at retirement

– 401(k) Plan .. A qualified profit sharing plan that gives a participant an option to take cash or to have the employer contribute that money towards the employee’s retirement.

– Money Purchase Pension Plan .. A defined contribution plan under which the employer’s contributions are mandatory and are based on each participant’s compensation. Retirement benefits under the plan are based on the amount in the participant’s individual account at retirement.

Employee Stock Ownership Plan (ESOP) .. A defined contribution plan designed to invest primarily in the stock of the sponsoring employer. ESOPs are “qualified” in the sense that the ESOP’s sponsoring company, the selling shareholder and participants receive various tax benefits. ESOPs are often used as a corporate finance strategy and are also used to align the interests of a company’s employees with those of the company’s shareholders.

To make your plan operational, we’ll prepare all plan documents and IRS forms for your review and for review by your legal counsel and/or tax advisor. For certain individually designed plans weíll also submit documentation to the Internal Revenue Service for a determination letter of the planís qualified status.

A Summary Plan Description, which is a simplified version of the plan document, and any other necessary informational materials will be prepared for distribution to your employees. We’ll assist a key person in your organization in answering their questions about the plan.

Other components of your installation include:

– Action/Minutes of the Board of Directors (for corporations)

– Plan and Trust documents

– Adoption Agreement

– IRS Forms, when applicable.

– Application for Trust Identification Number

– Notice to Employees

– Designation of Beneficiary Form, and

– 401(k) Enrollment Forms.

If you have a qualified plan and would like us to handle its future administration, we will provide an analysis of the current plan design. This is done by examining prior years’ transactions, forms and calculations and reviewing the plan for prevailing compliance with the law.

If necessary, recommendations will be made to correct or adjust the plan to ensure that your company objectives and cost limitations have been met.

Each year an administrative package will be prepared for your plan. Based on the employee census and trust accounting information you supply, the determination of the plan year contributions for tax planning purposes will be made.

Subsequently, trust fund activity is summarized in financial statements, an annual return, participant information and government reports. You will receive an administration booklet for your records, and forms will be prepared for your filing with the appropriate government agency.

Components of your plan administration include:

– Review of trust income statement and balance sheet

– Determination of accrued and vested benefits

– Calculation of required and allowable contributions

– Discrimination testing – one set of calculations

-Calculation of employee eligibility and plan entry

– Preparation of summary annual report

– Preparation of IRS/DOL Form 5500 and Schedules

– Preparation of plan management reports

– Allocation of pro-rata contributions, earnings and forfeitures

– Preparation of individual participant statements

Related Government Distribution Forms:

– 1096, 1099-R

– 945 to report federal income tax withholding

Finally, we will help you monitor, review and evaluate the plan after it has been in operation to make sure it is working well and to see if any changes are needed.