Plans We Support

Plan Sponsors along with their providers and advisors are committed to helping employees meet their retirement goals and generate a lifetime of income

A well thought out plan design, strong plan management, carefully chosen investment options and an effective way of engaging participants in the plan are all needed to ensure participants are on track for financial well-being.

We will partner with you to select the program that best meets the needs of your organization and employees.

The plans we support include, but are not limited to:

A 401(k) Plan is a defined contribution plan, typically a profit sharing plan that contains a cash or deferred arrangement as described in section 401(k) of the Internal Revenue Code. A cash or deferred arrangement is simply an arrangement that allows plan participants to elect to defer a portion of compensation, their elective deferrals, and have it contributed to the plan on their behalf, typically through payroll withholding.

A 401(k) plan may allow participants to elect “Roth” tax treatment of all, or a portion, of their elective deferrals. Under Roth treatment, the elective deferrals are taxable when deferred, as opposed to the pre-tax treatment afforded to traditional 401(k) elective deferrals. These Roth contributions, under current law, can be distributed tax-free in the future.

In addition to making elective contributions, an employer may contribute to the plan by matching all, or a portion, of the elective deferrals or by making non-elective, or profit sharing, contributions to all eligible participants.

403(b) Plans are similar to 401(k) plans but are governed by section 403(b) of the Internal Revenue Code. These plans may, or may not, be subject to ERISA, depending on the involvement of the employer in the plan’s operation.

403(b) plans may include contributions in the form of elective deferrals, including Roth elective deferrals, matching contributions or non-elective contributions.

403(b) plans may only be adopted by certain eligible employers. Those employers include 501(c) (3) organizations, educational organizations and states (including political subdivisions or state agencies).

A Safe Harbor 401(k) is a plan that allows maximum deferrals by owners and highly compensated employees because of required minimum contributions made to all other employees. It allows for both employer and employee contributions. To gain the benefits of a Safe Harbor plan, the employer is required to either match employee contributions (100 percent of the participant’s first 3 percent of salary and 50 percent of the next 2 percent of salary) or provide a non-elective contribution (3 percent of salary for all eligible employees). Discrimination testing is not required as long as the “Safe Harbor” requirements are met.
A Profit Sharing Plan is a type of defined contribution plan that is not a pension plan. The employer’s contribution to a profit sharing plan is not required to be fixed, nor does it need to be tied to profits. While a plan may have a definite contribution formula, many profit sharing plans use a discretionary formula by which the employer determines each year how much to contribute. While the plan may have discretion in determining the amount of the contribution, the allocation formula must be definite. Allocations may be defined in a variety of ways: pro rata to all participants based on compensation, integrated with Social Security, based on a points system or “cross-tested” based on participant allocation groups, just to name a few. Both for-profit and not-for-profit organizations may adopt profit sharing plans.

A Cash Balance Plan is a defined benefit plan that describes a participant’s accrued benefit as a hypothetical account balance or a single-sum amount. The term “cash balance” is used to distinguish this type of defined benefit plan from a “traditional” defined benefit plan. Generally, rules that are applicable to defined benefit plans are applied in the same manner to cash balance plans. However, because of the hypothetical account balances, cash balance plan accrued benefits can be reported in a manner more similar to a defined contribution plan.

457 Plans 457(b) plans may be maintained by a governmental employer (i.e., a State, a political subdivision of a State, or any agency or instrumentality of a State or political subdivision of a State). Rollovers are permitted to or from governmental section 457(b) plans.

457 Plans are ideal for:

• Governmental plans wishing to offer enhanced benefit packages to employees
• Creating a plan that is unique to the organizations needs