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A Versatile Full-Service Plan
The ShareBuilder PLAN4MOST is a flexible 401(k) that allows you to build a retirement plan that specifically meets the business needs of your company. With the PLAN4MOST, you can design a simple plan that only allows employee contributions or you may choose to build a plan that matches employee contributions and/or allows employees to share in profits. |
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Frequently Asked Questions
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Q. Is this the right plan for my organization?
A. The PLAN4MOST is for most companies. You are an ideal candidate if:
- You have more than 1 employee
- You want the flexibility of designing a plan that meets your specific needs
- You want investment flexibility
Q. What are the available investment options?
A. The plan has 15 diverse index funds, across multiple asset classes and 5 model portfolios. A Money Market fund is also available for investing.
Q. What type of enrollment materials are needed?
A. Enrollment is handled online. No hard copy information is necessary.
Q: Are any tax credits available to offset 401(k) plan fees?
A: Yes. In many cases, you may be eligible to receive a tax credit for 50% of your setup and annual administration fees or $500 (whichever is less). This credit can be taken each year for the first three years of the 401(k) plan. This credit may be taken in addition to any tax deductions you may be eligible to take for plan contributions.
To take this credit, you must employ at least one person who is not considered to be a highly-compensated employee (defined as a person who owns greater than 5% of the company or who earns more than $100,000 per year). In addition, you must employ fewer than 100 persons who earned more than $5,000 in the previous year. For additional details about this credit or to confirm that you are eligible, please consult your accountant or tax adviser.
Q. When does the PLAN4MOST have to be established?
A. Generally, the plan has to be established before the following:
- For the 401(k) feature, the plan must be established before the plan year end date
- For the profit sharing feature, the plan must be established before the end of the
plan year
- For the safe harbor feature, the plan must be established at least 3 months
before the end of the plan year
In order to comply with the plan establishment dates, the plan must be set up before the
dates specified above. Plan setup date requirements are contingent on the plan type
being adopted and whether or not it is an existing or startup plan. Specific deadlines are
set prior to the end of the year.
This information does not constitute tax advice. Please consult your tax adviser for specific tax information.
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