Profit Sharing Plans:

This type of plan allows for Employer contributions only. The Employer contribution amount is discretionary.

  • Pro-rata Allocations. Each participant receives the same percentage of his/her compensation
  • Allocations integrated with the social security wage-base
  • New Comparability Allocations
  • May offer a loan program
  • This plan type must satisfy the top-heavy minimum requirements in a top-heavy plan year if an Employer contribution is made.

401(k)/Roth 401(k) Profit Sharing Plans:

This type of plan allows for Employee and Employer contributions.

  • Employees may contribute on a pre-tax basis, an after-tax basis, or a combination of both. The maximum 401(k) limit is a combined limit. Catch-up contributions may be permitted.
  • The Employer may make a discretionary or mandatory matching contribution.
  • The Employer may make a discretionary profit sharing contribution as described above.
  • May offer a loan program
  • May have an automatic enrollment feature to increase participation
  • This plan type must satisfy ADP/ACP non-discrimination testing. Corrective refunds or an Employer QNEC contribution may be required to correct a failed test.
  • This plan type must satisfy the top-heavy minimum requirements in a top-heavy plan year.

Safe Harbor 401(k)/Roth 401(k) Profit Sharing Plans:

This type of plan allows for Employee and Employer contributions. The safe harbor contribution is not discretionary.

  • Employees may contribute on a pre-tax basis, an after-tax basis, or a combination of both. The maximum 401(k) limit is a combined limit. Catch-up contributions may be permitted.
  • The Employer may choose between a safe harbor non-elective contribution, or a safe harbor match contribution.
  • If a safe harbor non-elective contribution design is chosen, then the participants of the plan would receive a 3% of compensation contribution regardless of whether the participant contributes 401(k) or not. This contribution is not discretionary.
  • If a safe harbor match contribution design is chosen, then only the participants that contribute 401(k) would receive a safe harbor match contribution, up to 4% of compensation. An enhanced safe harbor match up to 6% of compensation may also be chosen.
  • The Employer may make a discretionary profit sharing contribution as described above.
  • May offer a loan program
  • May have an automatic enrollment feature to increase participation
  • This plan type is not subjected to ADP/ACP non-discrimination testing. There is no risk of receiving a corrective refund/forfeiture due to a failed test.
  • The top-heavy minimum requirements in a top-heavy plan year are satisfied by the safe harbor contribution. If a profit sharing contribution is made in addition to the safe harbor contribution, the plan may still needs to satisfy top-heavy minimum requirements.

ERISA 403(b)/Roth 403(b) Plans:

This type of plan is adopted by non-profit organizations, church organizations, public education organizations, and certain government agencies. This type of plan allows for Employee and Employer contributions.

  • Employees may contribute on a pre-tax basis, an after-tax basis, or a combination of both. The maximum 403(b) limit is a combined limit. Catch-up contributions may be permitted.
  • The Employer may make a discretionary or mandatory matching contribution.
  • The Employer may make a discretionary or mandatory Employer contributions.
  • May offer a loan program
  • May have an automatic enrollment feature to increase participation.
  • This plan type must satisfy ACP non-discrimination testing. Corrective refunds or an Employer QNEC contribution may be required to correct a failed ACP test.
  • This plan type is not subjected to top-heavy minimum requirements.
  • This plan may be paired with a profit sharing plan and a 457(b) plan

ERISA Safe Harbor 403(b)/Roth 403(b) Plans:

This type of plan is adopted by non-profit organizations, church organizations, public education organizations, and certain government agencies. This type of plan allows for Employee and Employer contributions. The safe harbor contribution is not discretionary.

  • Employees may contribute on a pre-tax basis, an after-tax basis, or a combination of both. The maximum 403(b) limit is a combined limit. Catch-up contributions may be permitted.
  • The Employer may make a discretionary or mandatory matching contribution.
  • The safe harbor match contribution is allocated to the participants that contribute 403(b) contributions, up to 4% of compensation. An enhanced safe harbor match up to 6% of compensation may also be chosen.
  • May offer a loan program
  • May have an automatic enrollment feature to increase participation.
  • This plan type is not subjected to ACP non-discrimination testing. There is no risk of receiving a corrective refund/forfeiture due to a failed ACP test.
  • This plan may be paired with a profit sharing plan and a 457(b) plan.

Non-Qualified Plans Offered:

457(b) Plans
409(A) Plans

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