401k Plan Design

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401(k) Plan Design Safe Harbor and New
Comparability Paul G. Masser, QKA Director of
Compliance Marketing Uniglobal Pension
Planning, Inc.
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The SEP   Ø    Easy and inexpensive.    
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The SEP   Ø    Easy and inexpensive. Ø  Employer
contributions only SARSEPs can no longer be
established.    
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The SEP   Ø    Easy and inexpensive. Ø  Employer
contributions only SARSEPs can no longer be
established. Ø   Pro-rata allocation of
employer contributions some allow integration
with social security wage base.      
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The SEP   Ø    Easy and inexpensive. Ø  Employer
contributions only SARSEPs can no longer be
established. Ø   Pro-rata allocation of
employer contributions some allow integration
with social security wage base.   Ø   Contribution
s are 100 vested immediately.    
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The SIMPLE IRA   Ø    Easy and inexpensive.    
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The SIMPLE IRA   Ø    Easy and inexpensive. Ø 
Employee salary deferrals capped at 10,500 for
2007 - 13,000 for participants age 50 or
over.    
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The SIMPLE IRA   Ø    Easy and inexpensive. Ø 
Employee salary deferrals capped at 10,500 for
2007 - 13,000 for participants age 50 or
over. Ø   Employer contribution fixed either
2 non-elective or 3 match.      
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The SIMPLE IRA   Ø    Easy and inexpensive. Ø 
Employee salary deferrals capped at 10,500 for
2007 - 13,000 for participants age 50 or
over. Ø   Employer contribution fixed either
2 non-elective or 3 match.   Ø   Contributions
are 100 vested immediately.    
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The Safe Harbor 401(k)   Ø     Employee salary
deferrals capped at 15,500 for 2007 - 20,500
for participants age 50 or over.    
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The Safe Harbor 401(k)   Ø     Employee salary
deferrals capped at 15,500 for 2007 - 20,500
for participants age 50 or over. Ø  Employer
safe harbor contribution fixed either 3
non-elective or 4 match.    
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The Safe Harbor 401(k)   Ø     Employee salary
deferrals capped at 15,500 for 2007 - 20,500
for participants age 50 or over. Ø  Employer
safe harbor contribution fixed either 3
non-elective or 4 match. Ø   Employer safe
harbor contributions are 100 vested
immediately.      
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The Safe Harbor 401(k)   Ø     Employee salary
deferrals capped at 15,500 for 2007 - 20,500
for participants age 50 or over. Ø  Employer
safe harbor contribution fixed either 3
non-elective or 4 match. Ø   Employer safe
harbor contributions are 100 vested
immediately.   Ø   Additional employer
contributions can be made with specialized
allocation formulas vesting schedules can be
applied.    
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The Safe Harbor 401(k) with New
Comparability   Ø     Employee salary deferrals
capped at 15,500 for 2007 - 20,500 for
participants age 50 or over.    
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The Safe Harbor 401(k) with New
Comparability   Ø     Employee salary deferrals
capped at 15,500 for 2007 - 20,500 for
participants age 50 or over. Ø  Utilize employer
3 safe harbor non-elective contribution.    
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The Safe Harbor 401(k) with New
Comparability   Ø     Employee salary deferrals
capped at 15,500 for 2007 - 20,500 for
participants age 50 or over. Ø  Utilize employer
3 safe harbor non-elective contribution. Ø  
Allocate additional profit sharing contribution
by employee classes.      
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The Safe Harbor 401(k) with New
Comparability   Ø     Employee salary deferrals
capped at 15,500 for 2007 - 20,500 for
participants age 50 or over. Ø  Utilize employer
3 safe harbor non-elective contribution. Ø  
Allocate additional profit sharing contribution
by employee classes.   Ø   By using
cross-testing, maximize owners/highly compensated
while minimizing contribution to
rank-and-file.    
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Joe, Jane, and Jim MD Retirement Plan Case Study
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