Super Comp Plan
Many companies that have faced challenges meeting nondiscrimination
testing and top-heavy requirements have found the new Super Comp Plan
to be a welcome addition to their retirement plan options. Super Comp
plans combine aspects of Safe Harbor 401(k) plans and New Comparability
plans to provide you with the ability to make maximum contributions
for highly compensated employees.
Key Benefits:
- Allows employees to make annual 401(k) pretax salary deferrals
of up to $16,500 in 2009. Participants age 50 or older can contribute
an additional $5500.
- Nondiscrimination and top-heavy testing is not required for Sage
Harbor employer-matching contributions
- Discretionary Profit-sharing contribution is permitted
- Maximum contributions and salary deferrals for highly compensated
employees
Possible Drawbacks:
- More administration costs than other plans
- Subject to ERISA reporting requirements
- Safe Harbor employer contributions required annually. Please
refer to Safe Harbor 401(k) for more information.
- Safe Harbor employer contributions are 100% immediately vested
- Discretionary Profit-sharing contributions are still subject
to nondiscrimination rules and top-heavy testing.
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