Keeping employees around until they retire is one thing, offering them the right retirement plan so they can enjoy their retirement is another.
At EJReynolds, we understand how important plan design is. Some firms want to attract and retain qualified employees. Others are looking to minimize compliance risk and control costs. Still others are looking for the maximum contributions to the owners.
That’s why we work with every client, both at the onset of the plan and each year, to ensure that the plan still meets the needs of the firm, while providing meaningful benefits to their employees, and minimizing tax risks to the owners.
The right TPA should have Expert Knowledge, Dedicated Service, Great Solutions and lead to growth for you and your clients.
EXPERTISE & EXPERIENCE
- Reputable qualified retirement plan expertise for nearly 30 years
- Diverse professional backgrounds (accounting, human resources, actuarial)
- Extensive employee accreditations (QPA, ERPA, CPC, QKA, TGPC)
- Senior administrators enrolled to practice before the IRS
SERVICE & DEDICATION
- One-on-one quality advisor and client relationships
- Dedicated and flexible business development staff
- Bi-lingual administrators to meet market needs
- Customized plans designed to fit sponsor goals
EFFECTIVE & ACCURATE SOLUTIONS
- Consultative approach ensures successful plans
- Leading-edge plan design through our specialization
- Fiduciary solutions and trusted management
- Advanced technology for proper administration
Plan Comparison Chart
| Plan Type | IRA | SEP IRA | Profit Sharing | Simple IRA | 401(k) | Safe Harbor 401(k) | Money Purchase | Cash Balance or Defined Benefit | Combination 401(k) & Cash Balance or Defined Benefit |
|---|---|---|---|---|---|---|---|---|---|
| Target Market | Any individual with earned income | Small businesses & self-employed individuals | Business with fluctuating earnings and self-employed individuals | No More than 100 Employees who earned more than $5,000 in prior year | Sole proprietorships, partnerships, limited liability companies and Corporations | Sole proprietorships, partnerships, limited liability companies and Corporations | Business with high stable earnings; self-employed individuals & nonprofit organizations | Business with high consistent earnings & owners close to retirement | Business with high consistent earnings & owners close to retirement |
| Key Features | Tax-deferred investing; no discrimination testing; investment flexibility | Investment flexibility; limited reporting | Flexible Contributions; investment flexibility | Tax-deferred investing; no discrimination testing; investment flexibility; limited reporting | Tax-deferred investing; flexibility in plan design; investment flexibility | Tax-deferred investing; no discrimination testing; investment flexibility | Consistent contributions, investment flexibility | Consistent contributions | Greatest Maximum consistent contributions |
| Contributors | Employee only | Employer only | Employer only | Employee & Employer | Employee & optional Employer | Employee & Employer | Employer only | Employer only | Employer & Employee |
| Contribution Flexibility | Yes | Yes | Yes | Very Limited | Yes | No; possible additional employer contributions above safe harbor | No; percentage established at plan set up | No; based on formula and Actuarial calculation | No; based on formula and Actuarial calculation |
| Maximum Eligibility Requirements | Not Applicable | Age 21 with any service in 3 of last 5 years | Age 21 and 1 year of service (2 years with 100% vesting) | Employees earning $5,000 in current year & any 2 prior years | Age 21 and 1 year of service | Age 21 and 1 year of service | Age 21 and 1 year of service (2 years with 100% vesting) | Age 21 and 1 year of service (2 years with 100% vesting) | Age 21 and 1 year of service (2 years with 100% vesting) |
| Maximum Total Individual Contribution | $6,000 (2021) plus $1,000 for those age 50 or older | Not Applicable | Not Applicable | $14,000 (2022) plus $3,000 for those age 50 or older | $20,500 (2022) plus $6,500 for those age 50 or older | $20,500 (2022) plus $6,500 for those age 50 or older | Not Applicable | Not Applicable | Employee limited to $20,500 (2022) plus $6,500 for those age 50 or older |
| Maximum Annual Employer Contribution | Not Applicable | 25% of eligible employee compensation; individually limited to $61,000 (2022) | Up to 25% of eligible employee compensation; limited to $61,000 per eligible employee (2022) | 100% up to 3% match to participants or 2% to all eligible employees | 25% of eligible employee compensation; limited to $61,000 (2022) | 3-4% safe harbor; optional additional contribution either matching or non-elective. (total 25% of eligible compensation) | Up to 25% of eligible employee compensation; limited to $61,000 per eligible employee (2022) | Amount needed to fund plan | Amount needed to fund plan |
| Vesting in Employer Contribution | Not Applicable | 100% immediately | May be graded up to 6 years or 100% after 3 years | 100% immediately | May be graded up to 6 years or 100% after 3 years | 100% immediately on Safe-Harbor contributions | May be graded up to 7 years or 100% after 3 years | 100% vesting after 3 years may be required | 100% vesting after 3 years may be required |
| Loans | No | No | Yes | No | Yes | Yes | Yes | Yes | Yes |
| When Established | Any time prior to tax filing deadline of April 15th without extension | Any time prior to tax filing deadline including extensions | Prior to fiscal year end | Prior to October 1st | Prior to fiscal year end | Anytime with 30 day notification for new plans prior to October 1st | Prior to fiscal year end | Prior to fiscal year end | Prior to fiscal year end |
| IRS 5500 Reporting | No | No | Yes | No | Yes | Yes | Yes | Yes | Yes |
