The IRS requires that contributions or benefits provided under a plan must not discriminate in favor of Highly Compensated Employees (HCEs).
As of 2018, the National Center for Employee Ownership estimates that there are almost 7,000 employee stock ownership plans (ESOPs) covering more than 14 million employees.
When choosing how to manage a 401(k) plan, the employer has two primary choices: bundled plan management services, or they can choose to utilize services from an independent Third-Party Administrator (TPA).
Under the Tax Cut and Jobs Act (TCJA), tax rates are the lowest they have ever been. Some say that tax rates may never be this low again, providing employers with a unique opportunity to use plan design to take advantage of these lower rates.
We communicate every day with texts, emails, and phone calls to clients, advisors, and other professionals. Our days are filled with communications. Far too often, though, little or no attention is given to the way we communicate.
While the establishment of a cash balance plan is an easy sell for certain small employers, traditional defined benefit plans also present a great sales opportunity.