ISSA

Plan Design Promise

Provide plan design analysis and recommendations each year.

Unmatched Expertise

Customized Plan Capabilities We specialize in complex plan design, including cross-testing, a type of profit sharing plan design which allows a plan sponsor to create employee classifications and provide for different allocation rates. The non-discrimination testing methodology used in this type of plan design takes into consideration an employee’s age and compensation. Benefits include:

• Flexible employer contribution • Multiple allocation rates among employees • Potential for FICA tax savings • Increased employee retention and recruitment • Higher contributions to business owners or employees in executive roles

Cross-testing can be used as a means to restructure compensation packages to save on payroll taxes. Assuming a compensation package consists of salary and bonuses, you could choose to pay less in cash or bonuses and divert the remaining amount to the profit sharing allocation, potentially giving you FICA tax savings.

What is Safe Harbor Safe Harbor is a type of plan design that guarantees a minimum employer contribution and in return allows for less restrictive non-discrimination testing requirements.

• Maximizes the HCEs deferral potential • Utilizes matching or nonelective contributions

• Implemented prior to the plan year • Offers immediate employee vesting