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Types of Plans

Customized Plan Design Consulting

Customized Plan Design Consulting

Customized Plan Design Consulting

Navigating the specifics of an employee retirement plan can be difficult but luckily with the right combination of features, plans can be designed to provide a great benefit to employees, while keeping employer cost requirements to a minimum, while we keep your stress level at a minimum as well. Helping you select the plan that is right for you is our main objective.

Plan Set-up

Customized Plan Design Consulting

Customized Plan Design Consulting

PENSERVCO will work closely with you and the financial advisor of your choice to efficiently set up a new plan or transition your existing plan from your current provider. We work with key personnel to streamline the tasks involved and to educate them regarding important aspects of the plan.  We offer benchmark reviews in critical areas t

PENSERVCO will work closely with you and the financial advisor of your choice to efficiently set up a new plan or transition your existing plan from your current provider. We work with key personnel to streamline the tasks involved and to educate them regarding important aspects of the plan.  We offer benchmark reviews in critical areas to ensure that fees paid by you and your participants are reasonable.

Marketing & Sales

Customized Plan Design Consulting

Marketing & Sales

PENSERVCO is a referral that offers multiple business solutions. Alongside our plan sets ups, we are an ideal location to host client meetings and sales presentations. We offer modern solutions with marketing support and scripts to help your team stay on message and give your team a guide to follow to work customers through the sales process.

401(k) Plans

Traditional 401(k) Plan

A 401(k) plan allows employees to contribute a portion of their income to an employer sponsored retirement plan on a pre-tax basis. The employer may choose to contribute matching amounts into the plan. The employer can also use the plan to provide profit sharing contributions to all eligible employees. Highly compensated employee deferral and match contributions are limited by discrimination testing.
 

Safe Harbor 401(k) Plan

This plan is similar to the traditional 401(k) plan with the exception that highly compensated employee contributions are not limited by the discrimination testing. The employer must either make a 3% Safe Harbor non-elective contribution or a Safe Harbor match contribution of at least 100% of compensation on the first 3% deferred by the employee plus 50% on the next 2% deferred. Both of these Safe Harbor contributions are 100% vested immediately.

Roth 401(k) Plan

Roth 401(k) is an optional feature of a 401(k) plan that permits plan participants to make after-tax salary deferrals, regardless of their income, unlike a Roth IRA, where eligibility is based on one’s tax filing status income level. Roth contributions grow tax-free and are not taxed when distributed, provided the necessary requirements are met. If the employer elects to offer the Roth 401(k) provision, participants will have a choice of making pre-tax or after-tax salary deferrals, or a combination of both.
 

SIMPLE 401(k) Plan

These plans eliminate many of the testing requirements of a standard 401(k) plan in exchange for restrictions on contributions, and the timing of setup and communication of annual employer contribution requirements to employees. 

Rollover Support

With a rollover IRA, you can keep adding 401(k)s and other plans sponsored by your employer throughout your career. We can help  if you have recently changed a job, or jus thave money leftover from a former employers workplace savings plan, we can help you move your investments into one account.

Profit Sharing Plans

New Comparability PS Plan

This is also referred to as a Cross Tested Plan. The goal of this type of plan is to maximize benefits for a group of employees (usually owners) while minimizing the contributions required for other groups (usually non-owners). Employees are divided into groups (or classes) with discretionary contribution rates for each group. 

Age Weighted PS Plan

These plans utilize allocation methods that base contributions on both the age and compensation of eligible employees, similar in concept to a defined benefit pension plan, but with discretionary contributions. For such plans, non-discrimination testing is based on the anticipated benefits at retirement, similar to defined benefit plans, as opposed to the level of contributions made in that particular year. In an age-weighted plan, the participant’s age, or length of time until retirement, is factored into the allocation formula on an individual basis, so older participants receive a larger share of the contribution.

Traditional Profit Sharing Plan

This plan type was designed for employees to share in the employer profits. Employer contributions are generally allocated to the participants in proportion to their compensation. 

Integrated Formula PS Plan

This type of plan correlates the employer contribution formula with Federal Social Security benefits. The Internal Revenue Code allows additional allocations on the compensation in excess of the Social Security Taxable Wage Base because these dollars do not accrue social security benefits. 

Other Plan Types

Cash Balance Plan

A hybrid of the old defined benefit plans that companies used to have that promised a monthly benefit when you retired. The old defined benefit plan does not have an annual contribution limit, unlike your standard 401(k) profit sharing plans that has a limit of $49,000 per person (in 2011). We use the contribution rules from the defined benefit to fund the owner’s contribution in the cash balance plan, then we use testing rules to make a 5% to 7.5% contribution for the staff in the company’s 401(k) profit sharing plan. Sounds complicated, right? Well just look down below to see some examples that will help you visualize what can be done. Learn more about cash balance plans.

Defined benefit plan

Identifies the specific benefit that will be payable to you at retirement. Your basic retirement benefit is usually based on a formula that takes into account factors like the number of years a participant works for the employer (years of service) and the participant's salary. Your retirement benefit is generally provided in the form of regular payments over your lifetime beginning at what the plan calls "normal retirement age," which is typically age 65. This stream of periodic payments is generally known as a pension or sometimes called an annuity.

403(b)

 A 403(b) plan is a retirement savings plan sponsored by 501(c)(3) entities (non-profit organizations) for their employees.  Assets may be invested in either annuities or mutual funds. The features of a 403(b) plan are very similar to those of a 401(k) plan. Employees may make salary deferral contributions that are usually limited by regulatory caps. The employer may, but is not required to, make matching or non-elective contributions to the employees. 

Money Purchase Plan

For money purchase plan, the annual employer contribution is fixed by a formula stated in the plan document. The employer must contribute according to the plan's established formula.

Plan Document Services

Types of Documents

  • Standard Prototype
  • Non-standard Prototype
  • Custom Documents

Service Package Includes:

  • Adoption Agreement
  • BASE Document
  • SPD - Summary Plan Description
  • Loan Policy - if necessary
  • Trust Agent
  • Beneficiary Form
  • File SS-4 if need plan to obtain TIN (Trust ID Number) from IRS
  • Voluntary Benefits
  • 529 plans

Cost of Living Adjustments 2020

Cost of Living Adjustments 2020 (PDF)

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