Plan Types

Defined Contribution Plans

Profit Sharing Plans are non-pension plans in which the employer’s contribution formula is discretionary. An employer is not required to have profits to contribute to the plan. The employer has many options in plan design on the allocation formula i.e., non-integrated, integrated and new comparability.

Section 401(k) Plans are arrangements that are included in a profit sharing plan but are more commonly referred to as section 401(k) plans. The types of contributions made to a section 401(k) plan are Elective Deferrals, Matching Contributions and Nonelective Contributions.

Safe Harbor 401(k) Plans are designed to satisfy certain conditions in order to pass the nondiscrimination testing requirements. This type of plan is beneficial to the highly compensated employees.

Defined Benefit Plans

Defined Benefit Plans do not maintain account balances to reflect the accrued benefits of the plan participants. Instead the accrued benefit is determined by a specific benefit formula stated in the plan.

Cash Balance Plans are a type of defined benefit plan that defines the participant benefit in terms of a hypothetical account to mirror the account balance approach in a 401(k) plan. Cash Balance plans are beneficial to the highly compensated employee and can be used in succession estate planning.

BushRPS can design the plan that best suits your needs and goals. Contact us today via phone or e-mail to get started.