Employer Plan Questions

Los Cabos, Mexico Vacation

  • How much will starting a plan cost my business?

    Many clients are surprised at how economical plan administration costs can be when they use our services. The costs vary depending on the type of plan, number of participants, and options that are in your plan. Since the Internal Revenue Service may allow for a tax credit on the plan set up fees, you should consult with your accountant to see if your business qualifies for this credit. Please contact us with your specific information and we’ll be happy to provide you with an exact quote.

    What services are included?

    Retirement Essentials provides all required ERISA disclosures and a plan administration kit which contains your pertinent documents. We also provide the required valuations, whether quarterly or annually, for all plans. In addition, we also provide the regulatory compliance testing, contribution calculations, government reporting, IRS approved documents, and news and information concerning retirement plans. A Retirement Specialist is assigned to your plan and will be available to you either by phone (toll free) or email for all of your questions and concerns.

  • What about investing the plan money?

    Retirement Essentials’s staff is highly trained in the area of retirement plan compliance issues for Internal Revenue Service (IRS) and Department of Labor (DOL) regulations. Since our expertise is not in the investment area, we leave the investing decisions up to the Employer and their Financial Professional. Therefore the Employer is free to choose whatever investment company and/or investment manager that they feel will be the best fit for their financial needs.

    Will the company have to make any contributions?

    It depends on what type of plan you select. A profit sharing plan and/or a Money Purchase plan do require employer contributions. A 401(k) Plan only requires the employer to make a contribution if the plan is “top heavy”. A plan is top heavy if more than 60% of the plan balance belongs to the owners or officers of the company.

photo by: Ian D. Keating