Plan Illustrations

 

Illustration note: The numbers of participants included in the illustrations were limited for simplicity and comparability. However, all of the plans are able to serve from one to hundreds of participants.

 
 
 

DEFINED BENEFIT PLAN ILLUSTRATION

(Provides the Highest Contribution and Tax Deduction)

The contributions for Defined Benefit Plans are calculated based on the employees' age and compensation. The older the employee and the more compensation (up to IRS compensation limits) the larger the contribution required for the employee. These plans are not subject to the 25% employer deduction or participant contribution limitations.

Defined Benefit Plans (DBP) work especially well with owners or key employees more advanced in age than the other employees. DBP's can even be set up for single employee businesses. The plan can be used with any number of owners, key employees and other employees. The following is only one example of how this type of plan can benefit your company:



Click here for a printable copy

To find out more information about this type of plan and how it could specifically help you and your company click here to request that someone contact you.

sales@pensioncon.com

Or Call us at:

Pension Consultants, Inc.

Additional assumptions used in above calculations:

  • Rate of investment return is 5.5%.
  • Total Owner combined Federal & State Income Tax Rate assumed at 45%. You should consult your tax advisor as to the actual tax rates and your actual amount saved.
  • Contributions may vary in the future based on actual investment performance, plan, provisions and changes in tax regulations.
  • The numbers of participants included in the illustrations were limited for simplicity and comparability. However, all of the plans are able to serve from one to hundreds of participants.

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CASH BALANCE PLAN ILLUSTRATION

(Provides One of the Highest Contributions and Tax Deductions)

The contributions for Cash Balance Plans are calculated based on the employees' ages, compensation and employee classes. The employer decides the percent of contribution for each employee. Since this type of Cash Balance plan heavily favors the owners or key employees, it is almost always set up in combination with a 401(k) Plan so that together they satisfy nondiscrimination requirements.

Cash Balance plans work especially well where owners or key employees and some of the other employees are more advanced in age. They work best for a business with at least 8 employees. The following is only one example of how a Cash Balance & 401(k) Plan combination can benefit your company.



Click here for a printable copy

To find out more information about this type of plan and how it could specifically help you and your company click here to request that someone contact you.

sales@pensioncon.com

Or Call us at:

Pension Consultants, Inc.

Additional assumptions used in above calculations:

  • Total Owner combined Federal & State Income Tax Rate assumed at 45%. You should consult your tax advisor as to the actual tax rates and your actual amount saved.
  • Contributions may vary in the future based on actual investment performance, plan, provisions and changes in tax regulations.
  • The numbers of participants included in the illustrations were limited for simplicity and comparability. However, all of the plans are able to serve from one to hundreds of participants.

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CROSS-TESTED PLAN ILLUSTRATION

The contributions for Cross-Tested Plans are based on the employees' age, compensation, employee classes and the percent of contribution decided by the employer.

Cross-Tested plans (also known as New Comparability Plans) work extremely well where the owners or key employees are more advanced in age than other employees. They can also be set up in conjunction with a 401(k) plan. The plan can be used with any number of owners, key employees and other employees. The following is only one example of how a Cross-Tested employer profit sharing plan can benefit your company:



Click here for a printable copy

To find out more information about this type of plan and how it could specifically help you and your company click here to request that someone contact you.

sales@pensioncon.com

Or Call us at:

Pension Consultants, Inc.

Additional assumptions used in above calculations:

  • Total Owner combined Federal & State Income Tax Rate assumed at 45%. You should consult your tax advisor as to the actual tax rates and your actual amount saved.
  • The contribution and percents to the groups can vary year to year at the discretion of the employer, within legal limits.
  • The numbers of participants included in the illustrations were limited for simplicity and comparability. However, all of the plans are able to serve from one to hundreds of participants.

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401(k) PLAN ILLUSTRATION

A 401(k) Plan allows employees to defer pretax dollars for their own retirement savings. These plans can be set up with or without an employer match and, in addition to a match, can allow a discretionary employer contribution each year. Many 401(k) plans are set up as Safe Harbor plans coupled with a cross-tested employer discretionary contribution. The plan can be used with any number of owners, key employees and other employees. The following is only one example of how a 401(k) Plan can benefit your company:



Click here for a printable copy

To find out more information about this type of plan and how it could specifically help you and your company click here to request that someone contact you.

sales@pensioncon.com

Or Call us at:

Pension Consultants, Inc.

Additional assumptions used in above calculations:

  • Total Owner combined Federal & State Income Tax Rate assumed at 45%. You should consult your tax advisor as to the actual tax rates and your actual amount saved.
  • Employees may also defer up to the legal maximum without any effect on the owner.
  • The contribution and percents to the groups can vary year to year at the discretion of the employer, within legal limits.
  • The numbers of participants included in the illustrations were limited for simplicity and comparability. However, all of the plans are able to serve from one to hundreds of participants.

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PROFIT SHARING PLAN ILLUSTRATION

A profit sharing plan allows an employer (at the employer's discretion) to contribute and deduct from 0% to 25% of covered payroll each year. The plan can be set up to allow, within legal limits, a higher percentage contribution to the higher compensated employees. The plan can be used with any number of owners, key employees and other employees. The following is only one example of how a Profit Sharing Plan is able to provide the owner or key employee the maximum amount (based on 2004 tax regulations) and benefit your company:



Click here for a printable copy

To find out more information about this type of plan and how it could specifically help you and your company click here to request that someone contact you.

sales@pensioncon.com

Or Call us at:

Pension Consultants, Inc.

Additional assumptions used in above calculations:

  • Total Owner combined Federal & State Income Tax Rate assumed at 45%. You should consult your tax advisor as to the actual tax rates and your actual amount saved.
  • Employees may also defer up to the legal maximum without any effect on the owner.
  • The contribution and percents to the groups can vary year to year at the discretion of the employer, within legal limits.
  • The numbers of participants included in the illustrations were limited for simplicity and comparability. However, all of the plans are able to serve from one to hundreds of participants.

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MONEY PURCHASE PENSION PLAN ILLUSTRATION

A Money Purchase Pension Plan requires an employer to contribute and deduct each year a fixed percentage, up to 25%, of compensation, where the percentage is defined in the plan document. The plan can be used with any number of owners, key employees and other employees. The following is only one example of how a Money Purchase Pension Plan is able to provide the owner or key employee the maximum amount (based on 2004 tax regulations) and benefit your company:



Click here for a printable copy

To find out more information about this type of plan and how it could specifically help you and your company click here to request that someone contact you.

sales@pensioncon.com

Or Call us at:

Pension Consultants, Inc.

Additional assumptions used in above calculations:

  • Total Owner combined Federal & State Income Tax Rate assumed at 45%. You should consult your tax advisor as to the actual tax rates and your actual amount saved.
  • Employees may also defer up to the legal maximum without any effect on the owner.
  • The contribution and percents to the groups can vary year to year at the discretion of the employer, within legal limits.
  • The numbers of participants included in the illustrations were limited for simplicity and comparability. However, all of the plans are able to serve from one to hundreds of participants.

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TARGET BENEFIT PLAN ILLUSTRATION

The contributions for Target Benefit Plans are calculated based on the employees' age and compensation. The older the employee and the more compensation (up to IRS compensation limits) the larger the contribution required for the employee. These plans are age weighted with a fixed formula contained in the plan document. These plans are subject to the IRS employer deduction limitations.

A Target Benefit Plan works especially well where the employer desires to reward those closest to retirement age. The plan can be used with any number of owners, key employees and other employees. The following is only one example of how this type of plan can benefit your company:



Click here for a printable copy

To find out more information about this type of plan and how it could specifically help you and your company click here to request that someone contact you.

sales@pensioncon.com

Or Call us at:

Pension Consultants, Inc.

Additional assumptions used in above calculations:

  • Total Owner combined Federal & State Income Tax Rate assumed at 45%. You should consult your tax advisor as to the actual tax rates and your actual amount saved.
  • Employees may also defer up to the legal maximum without any effect on the owner.
  • The contribution and percents to the groups can vary year to year at the discretion of the employer, within legal limits.
  • The numbers of participants included in the illustrations were limited for simplicity and comparability. However, all of the plans are able to serve from one to hundreds of participants.

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