Plan Types

Benefit Solutions Corp focuses specifically on custom design, implementation and administration qualified and retirement plans. We can help you maximize the benefits of your company by implementing the right plan:

• 401(k) Plans are a form of defined contribution plan where participants in the plan can elect to make a pre-tax contribution to a personal account through a salary reduction agreement. These plans can allow for employer matching contributions based on a set formula equal to a percentage of the participant's contribution. Usually, participants are allowed to direct the investment of the contributions.



• Safe Harbor Plans are designed to minimize the administrative costs and burdens associated with maintaining a retirement plan. Safe Harbor Plans avoid complicated I.R.S. non-discrimination rules associated with plan tax qualification by complying with two simple requirements: a timely written notice to plan participants, and a choice by the employer between two predetermined safe harbor contribution formulas. Under either safe harbor formula, the employer contributions are guaranteed and 100% owned by the plan participants.



• Profit Sharing Plans are a form of defined contribution plan used by employers to help encourage employee productivity by providing for participation in the company's profits. Employers can make annual contributions according to a predetermined formula or at the discretion of the board of directors. Contributions can even be made if the company experiences little or no profit.



• New Comparability and Age Weighted Plans divide plan participants into two or more categories. Different contribution formulas are then applied to each defined category. This method maximizes the benefits to the category of participants that the employer wishes to reward the most for the year. A 401(k) salary deferral provision may also be incorporated.



• Defined Benefit Pension Plans are a traditional form of pension plan. They offer a fixed retirement income that is usually paid over the lifetime of the participant. Employer contribution amounts are based on a specified actuarial formula using a flat dollar amount or a percentage of wages. Death and disability benefits can be available under these pension plans. Defined benefit plans typically allow for higher contributions than traditional defined contribution plans.



• 412(i) Plans, like traditional defined benefit plans, offer a retirement benefit specified by a formula based on a flat dollar amount or a percentage of a participant's income and years of service. 412(i) plans differ from traditional defined benefit plans because they are funded using the guaranteed rates of an insurance company. This allows for a less expensive plan because there is no longer the need for an enrolled actuary. The insurance and annuity contract premiums are paid with tax-deductible dollars and generally allow for substantially higher tax-deductible employer contributions when compared to other qualified plans.



• Cash Balance Pension Plans are a form of pension plan that define a participant's retirement benefit by establishing a personal hypothetical or 'credit' account. Participants receive a pay-credit, usually a percentage of wages, and an interest-credit. The benefit provided by the employer upon the participant's retirement is equal to the balance in the 'credit' account.



• Target Benefit Pension Plans are a form of pension plan where the desired retirement benefit amount is chosen by the employer. Each year, a portion of the participant's wages is contributed to a personal account in order to achieve a targeted benefit. Upon retirement, the balance of the personal account is the participant's total retirement benefit.