Practice Areas

Retirement plans fall into two broad categories:

DEFINED CONTRIBUTION PLANS provide for an employer contribution. The benefit available for participants will depend on Employer contributions, investment earnings or losses, and forfeitures. There are two basic types of Defined Contribution Plans:

Money Purchase

The employer may contribute up to the lessor of (a) 25% per year of each participating employee’s compensation or (b) $61,000 in 2022 or $66,000 in 2023, to each employee’s account. Any forfeitures arising can be either (1) reallocated to the accounts of other Participants in a nondiscriminatory manner or (2) used to reduce future employer contributions. The contribution rate is set out in the Trust Instrument and may not be changed without amending the Plan.

Profit Sharing

The employer may contribute up to the lessor of (a) 25% per year of each participating employee’s compensation or (b) $61,000 in 2022 or $66,000 in 2023, to each employee’s account. Any forfeitures arising can be either (1) reallocated to the accounts of other Participants in a nondiscriminatory manner or (2) used to reduce future employer contributions. The contribution rate may be set out in the Trust Instrument or it may be changed annually by the Board of Directors of the Corporation or the owner of an unincorporated business.

DEFINED BENEFIT PLANS assure specific benefits to plan participants. The maximum defined benefit in 2022 is $245,000 or $265,000 in 2023. The employer cost is whatever it takes to provide those defined benefits. That cost will depend on such items as investment earnings, turnover, deaths and disabilities, etc.

Defined contribution plans annual administrative services

The benefit available for participants will depend on Employer contributions, investment earnings or losses, and forfeitures.

Allocation of Plan

Annual allocation of the Defined Contribution plan showing individual account balances, total assets of the plans (including gains or losses), forfeiture calculations, allocation of Employer and/or Employee contributions, etc. A bound computerized allocation report will be provided to the Employer annually summarizing the above.

Annual Employee Benefit Statements

Annual preparation of individual benefit statements for distribution to participating employees in the plan, which will include their account balance at the beginning of the year, employer contributions, forfeitures, investment gains or losses, transfers between accounts, account balance at end of year, death benefit and/or any Life Insurance, and summary of vested interest in their account balance.

Summary Annual Report

Preparation of this federally mandated report will be prepared in conjunction with preparation of the individual employee benefit statements and forwarded to the plan administrator.

Reporting and Disclosure

Preparation of reports and forms, required to be filed annually, with the Treasury Department, the Labor Department, for the signature of the Plan Administrator and/or Trustee.

Consultation

a. An annual meeting with Management to present the Allocation and discuss the computerized reports is available to clients.

b. Routine plan administration, e.g., assistance in interpreting plan provisions.

c. Periodic review of the plan to determine that it continues to qualify under the applicable sections of the Internal Revenue Code as well as advise on pertinent design aspects of the program.

Defined benefit pension plans annual actuarial services

assure specific benefits to plan participants. The maximum defined benefit in 2016 is $210,000 and $215,000 in 2017. The employer cost is whatever it takes to provide those defined benefits. That cost will depend on such items as investment earnings, turnover, deaths and disabilities, etc.

Actuarial Valuation

Preparation of annual Actuarial Valuation, a copy of which will be presented to Management in a bound computerized report, which includes a list of all participants in the plan setting forth estimates of their respective projected benefit at Normal Retirement, their projected primary Social Security and their current vested benefit accrual. The purposes of the valuation are:

a. To determine the funded status of the plan, i.e., whether prior funding has been sufficient to put the plan in an actuarial sound position.

b. To determine current minimum and maximum contributions toward the funding of benefits provided under the plan.

c. To compare actual experience with that expected on the basis of the actuarial assumptions employed for valuation purposes so that nay required adjustments can be made in a timely and orderly manner.

d. To determine the current contribution required to meet federal minimum funding standard.