…Typically, employees are offered three options. (1) Permanent life insurance with a death benefit that is a multiple of salary, (2) term insurance with a death benefit that is a multiple of salary, and (3) $50,000 group term insurance. The multiple of salary offered is…
There are a variety of different types of employer contributions out there, and like everything else, they all have upsides and downsides. According to the Profit Sharing Council of America’s 61st Annual Survey, the average employer contribution made to a Defined Contribution retirement plan equals…
While Pooled Employer Plans (PEPs) and Multiple Employer Plans (MEPs) got the lion’s share of attention last year with the passage of the SECURE Act (Setting Every Community Up for Retirement Enhancement) – and understandably so – another type of plan is also gaining traction…
…Russell 1000 Value index, have been hurt by economic slowdowns and manufacturing shutdowns during the pandemic. Growth stocks have been trading at record multiples, including the key measures of price-to-earnings and price-to-cash flow. Those who believe that these multiples have created a “bubble” that is…
…at or even above this level, with solid positive returns. In fact, the S&P 500 first crossed the 2.7x multiple in the modern era in the summer of 1995, and spent most of following 15 years above that multiple, through both bull and bear markets….
…presumably “key” employees, while younger, and/or lower paid employees receive a lower percentage of the total employer contribution to the plan. New Comparability plans are typically designed to benefit owners and key employees over rank and file employees, and can be used if the employer…
…meaning that, in the long run, we should see more new plans being formulated. Further, SECURE authorizes open multiple-employer plans (MEPs) along with pooled employer plans (PEPs) – which provides small businesses the opportunity to more effectively pool their resources to offer a retirement plan…
…Safe Harbor Contribution Requirement for Plans with Qualified Automatic Contribution Arrangement These safe harbor plan designs require 100% vesting after 2 years of employment. 3% (non-elective employer contribution – “NEC”) of salary for all eligible employees, or An employer matching contribution which results in a…
…filing the employer’s tax return for 2020. Under such a scenario, the plan is assumed to be adopted as of the last day of the employer’s prior tax year – i.e., Dec. 31, 2020. The provision applies to plans adopted for taxable years beginning after…
…provisos in detail. As part of its aim to expand and preserve savings, the Act authorizes open multiple-employer plans (MEPs), providing small businesses the opportunity to more effectively pool their resources to offer a retirement plan that is cost effective and administratively simpler. (More about…
As we talked about in our last blog, lots of problems can arise when an employer fails to read his plan document, and/or to completely understand it. The reasons for this are manifold, but here are a few examples of the problems that can result…
…is of course a solid option as well, but by its very definition, an employer may not realize the collective bargaining power that the economies of scale can afford them in a GoP, PEP, or multiple employer plan (MEP). Another not insignificant detail when it…