This is a type of qualified retirement plan in which a participants benefits are based solely on both employer and employee contributions as well as the earnings on those contributions. Below is some general information on 2 of the most popular types of Defined Contribution plans MMR works with:
- Profit Sharing Plan – Contributions to the plan are usually discretionary and may be made without regard to profits. An employer can make contributions to participants typically based on a predetermined formula. MMR works with the most recent formula’s including but not limited to Social Security Integration, Age Based & Cross Tested (New Comparability).
- 401(k) Savings Plans– This is a type of profit sharing plan that allows pre-tax employee contributions. This is can be done in conjunction with the employer able to make both matching and profit sharing contributions. The matching formula’s can be fixed or discretionary. Safe Harbor formula’s exempt a plan from certain testing requirements. We also work with several of the newer types of 401(k) plans like QACA, EACA & Triple Stack 401k.
- Other DC Plans MMR Services – Money Purchase, Target Date, ESOP