Plan Design
Over the past couple of decades, the retirement plan landscape has evolved dramatically. There have been a number of legislative changes including the passage of the Economic Growth & Tax Relief Reconciliation Act of 2001 (EGTRRA) and the Pension Protection Act of 2006. Most recently, the government has passed the SECURE Act of 2019 & CARES Act in 2020. Defined Benefit plans, commonly known as pension plans, are becoming rare, and Money Purchase plans are practically extinct. Now more than ever, it is important to hire an expert in the field of retirement plans to monitor changes and industry trends.
WWK services corporate retirement plans. We take the time with each client to determine their true goals for offering a plan. Whether the goal is simply to offer an employee benefit or to maximize key employees’ deferrals, we illustrate the best possible options available to the plan sponsor, assisting them in weighing the pros and cons.
The field of retirement plans is extremely complex. There are a variety of plans including:
- SEP
- SAR-SEP
- SIMPLE
- 401(k)
- 403(b)
- 457
- Money Purchase
- Straight Profit Sharing
- Cross Tested Profit Sharing
- Age-Weighted
- New Comparability
- Super Comparability
- Straight Defined Benefit
- Cash Balance Defined Benefit
- Single 401(k)
- Single Defined Benefit
In addition, it is possible to combine some, but not all, of the above. Company matches, safe harbor contributions, discrimination testing, employee loans, and hardship withdrawals complicate matters even more. It is crucial to implement the right strategy for each corporation in order to efficiently address the client’s objectives. It’s additionally important to align the plan with the appropriate administrator. WWK works directly with respected administrators in order to match the necessary capabilities with the plan, while keeping costs in check.