Retirement Benefits Third Party Administration
AmeriBen/IEC Group offer's a variety of retirement plan solutions benefiting clients across the United States. We perform a full range of ongoing consulting, administrative and recordkeeping services including plan design tailored to meet the needs of your company's objectives. We offer a prototype plan document (Standardized and Non Standardized), plan year end valuations, compliance testing and government reporting. We provide experienced administration for the following types of retirement plans:
401(k) Plans (Traditional, Safe Harbor, Roth and Solo k)
Traditional 401(k) Plan - A 401(k) plan allows an employee to save for retirement while deferring income taxes on the saved money and earnings until withdrawal. The employee elects to have a portion of his or her wage paid directly, or "deferred", into his or her 401(k) account. The employer can also use the plan to provide profit sharing contributions to all eligible employees. Highly compensated employee 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 allocate 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 immediately 100% vested.
Roth 401(k) Plan - With a Roth feature, the employee does not get a tax deduction at the time of the deferral contribution (it's an after tax contribution), but all qualified assets at retirement are tax free, including earnings. A plan with a Roth feature must also have the traditional pre-tax deferral option as well.
Solo 401(k) Plan - A solo 401(k) plan is a regular 401(k) plan combined with a profit-sharing plan,designed for self-employed individual (and spouse) with part time workers that work less than 1,000 hours per year. Requires less administrative upkeep, and allows business owner to maximize contribution amounts which are higher than Simple 401(k), SEP IRA and traditional IRA limits.
Profit Sharing Plans (Traditional, Integrated, New Comparability and Age Weighted)
Traditional Profit Sharing Plan - This plan type is designed for employees to share in the profits of the company. Employer contributions are generally allocated to the participants in proportion to their compensation.
Integrated Formula Profit Sharing Plan - This type of profit sharing allocation correlates the employer contribution formula with Social Security benefits. This allocation method results in larger contributions for higher paid employees. The Internal Revenue Code allows additional allocations to the compensation in excess of the Social Security Taxable Wage Base because these dollars do not accrue Social Security benefits.
New Comparability Profit Sharing Plan - Also referred to as a "Cross Tested" Plan. This type of plan allows different groups of plan participants to receive different levels of employer contribution allocations. They are usually designed to allow business owners to receive the maximum contribution permitted in a defined contribution plan.
Age Weighted Profit Sharing Plan - The feature of an age-weighted profit sharing plan allocates a higher percentage of plan contributions to older employees. The assumption is that older employees have less time before they retire and therefore less time to accumulate retirement savings. Age-weighted plans are suitable for business owners who are considerably older than their employees.
403(b) Plan - The 403(b) Plan is a tax deferred retirement plan available to employees of educational institutions and certain non-profit organizations as determined by section 501(c)(3) of the Internal Revenue Code. Contributions and investment earnings in a 403(b) grow tax deferred until withdrawal, at which time they are taxed as ordinary income. These plans have many similarities to 401(k) plans, but have different rules on contribution limits, discrimination requirements, and other administrative requirements.
Money Purchase Plans
Money Purchase Plan - A Money Purchase Plan, sometimes referred to as a "Pension Plan", requires a fixed percentage of compensation to be contributed to each eligible employee annually. In many ways it operates like a profit sharing plan but is not based on company profits and you are required to contribute the same percentage of employees' salaries each year.
Multiple Employer Plans
Multiple Employer Plan - A Multiple Employer Plan is a single plan maintained by 2 or more employers who are not related. Any group of unrelated businesses can co-sponsor a multiple employer plan. A big advantage to a multiple employer plan is the cost savings that it can provide to the individual businesses participating in the plan versus each business setting up their own individual plan.