Set Up Your Clients’ Cross-Tested Plans Before Year-End
Help Your More Highly Compensated And/Or Older Clients Maximize Savings on Taxes AND For Retirement
Cross-tested plans offer the ability to create multiple benefit levels within a retirement plan to meet the overall needs of an organization. This can be an important consideration when a plan seeks to allow the business owner to allocate a higher contribution rate to the owner and other highly compensated employees, while still providing a benefit to the rest of the employees. Doing so enables older workers to stay on track for retirement by allowing higher contribution amounts for older/HCE without affecting rates contributed to other employees.
Here’s an example of how it works: Read More »
Cross-Tested Plans
Help Your Older and More Highly Compensated Clients Save On Taxes AND Save More For Retirement – But The Time To Act Is Now!
Many small business owners start 401(k) plans to benefit their hard-working employees. Sometimes, however, a basic 401(k) plan which treats every employee the same – including the owner – can make it challenging for the owner to stay on track for retirement. A cross-tested plan allows business owners to allocate a higher contribution rate to the owners and other highly compensated employees while also providing a benefit to the rest of the employees. Here’s an example of how it might work: Read More »
