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New Comparability Plans
A New Comparability Plan is a profit sharing plan in
which the employees are divided into “rate
groups”, with each group receiving a contribution
that is a different percentage of compensation.
The simplest type of grouping is to have the owners
in one group and all other employees in another
group. Some employers have several groups such
as owners, managers, clerical staff, professional
staff, etc.
This type of plan is tested for nondiscrimination on a
cross-tested basis under Section 401(a)(4) of the
Internal Revenue Code. The calculations involved
in the testing are quite complex, but the formulas
tend to provide higher paid employees with larger
contributions when compared to a traditional
profit sharing plan.
which the employees are divided into “rate
groups”, with each group receiving a contribution
that is a different percentage of compensation.
The simplest type of grouping is to have the owners
in one group and all other employees in another
group. Some employers have several groups such
as owners, managers, clerical staff, professional
staff, etc.
This type of plan is tested for nondiscrimination on a
cross-tested basis under Section 401(a)(4) of the
Internal Revenue Code. The calculations involved
in the testing are quite complex, but the formulas
tend to provide higher paid employees with larger
contributions when compared to a traditional
profit sharing plan.
...We're Thinking Forward
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| Benefit Plans Services Inc., offers retirement plans, 401k Plans, 403b Plans, Age-Weighted Plans, Davis bacon Plans, Money Purchase Plans, New Comparabillity Plans, Profit Sharing Plan, Safe Harbor 401k Plans, SEP Plans, Simple 401k Plans, Thrid Party 401k We are a third party retirement plan provider located in Huntington WV, throughout the Tri-State Valley, We are a full service benefits consulting firm providing a wide range of retirement services in ARIZONA, AZ, ARKANSAS, AR, CALIFORNIA, CA, COLORADO, CO, CONNECTICUT, CT, DELAWARE, DE, DISTRICT OF COLUMBIA, DC, FLORIDA, FL, GEORGIA, GA, HAWAII, HI, IDAHO, ID, ILLINOIS, IL, INDIANA, IN, IOWA, IA, KANSAS, KS, KENTUCKY, KY, LOUISIANA, LA, MAINE, ME, MARYLAND, MD, MASSACHUSETTS, MA, MICHIGAN, MI, MINNESOTA, MN, MISSISSIPPI, MS, MISSOURI, MO, MONTANA, MT, NEBRASKA, NE, NEVADA, NV, NEW HAMPSHIRE, NH, NEW JERSEY, NJ, NEW MEXICO, NM, NEW YORK, NY, NORTH CAROLINA, NC, NORTH DAKOTA, ND, OHIO, OH, OKLAHOMA, OK, OREGON, OR, PENNSYLVANIA, PA, PUERTO RICO, PR, RHODE ISLAND, RI, SOUTH CAROLINA, SC, SOUTH DAKOTA, SD, TENNESSEE, TN, TEXAS, TX, UTAH, UT, VERMONT, VT, VIRGIN ISLANDS, VI, VIRGINIA, VA, WASHINGTON, WA, WEST VIRGINIA, WV, WISCONSIN, WI and WYOMING, WY. We serve the communities of Ashland, Russell, Greenup Paintsville, Louisa, Prestonsburg, Pikevile, Chesapeake, Proctorville, Ironton, South Point, Portsmouth, Gallipolis, Jackson, Coal Grove, Rockhill, Huntington, Barboursville, Milton, Ona, Hamlin, West Hamlin, Branchland, Ranger, Winfield, Teays Valley, Lesage, Apple Grove, Logan, Williamson, Kermit, Cross Lanes, Winfield, Dunbar, St. Albans, Ravenswood, Parkersburg, Point Pleasant, Kenvoa, Ceredo, Wayne, Lavalette, Charleston, Cross Lanes, Beckley, Buffalo, Morgantown, Clarksburg and the Tri-State |