Advanced Profit Sharing rewards employees by group, tenure or age
This ShareBuilder 401k is ideal for businesses with unique employee groups (e.g.
legal firm with partners, attorneys and staff). This plan uses a New Comparability
or an Age Weighted structure to determine the best way to divide company contributions
based on your budget, tax, employee make-up and incentive needs.
- Provide a retirement benefit to your employees while saving money with an
affordable 401(k) plan
- Your ShareBuilder 401k Consultant will run customized projections to help
you determine the most cost effective way to meet your company's goals
- Reward each group appropriately in line with business results
- Get started quickly with our fast online plan setup
- Receive a deduction from taxable business profits for contributions
- Become eligible for a tax credit of 50% ($1,000 maximum) of the administrative
costs for each of the first three years of the new plan (for businesses with fewer
than 100 employees) if this is your first 401(k) plan
- Contribute at the maximum rate while retaining the flexibility to contribute
at a lower rate in future years
- Automatic price discounts as your plan grows
For Plan Sponsor:
- Accommodates any size organization with more than 1 employee
- Startup and takeover plans for the following plan types:
and Safe Harbor plans
- Exact daily valuation with
real-time access to information
- Administrative Manual and Forms Kit
- Non-standardized Prototype Plan Document
and Adoption Agreement
- Summary Plan Description
(SPD) and Loan Policy
- Sample Board of Directors
- Government tax reporting – including 1099R and signature-ready Form 5500
- Complete compliance testing and tracking
- Web based contribution processing and ACH payment of deposits
- Access to purchase a required
- Full-service, online access to administer and monitor plan
- Toll-free access to customer service support
- Retirement investing with a diverse list of
index funds across multiple
- Model portfolio selections
designed for different investing goals
- Full-service, online access to check balances and manage account
- Online enrollment
- Online statements
- Annual statement mailed to the employee's home
- Access to tax-free loans
- Allows for account consolidation and rollovers
- Toll-free access to customer service support
Frequently Asked Questions
- Q. Is this the right plan for my organization?
A. This ShareBuilder 401k plan is a good fit for businesses with unique employee
groups (e.g. legal firm with partners, attorneys and staff). You are an ideal candidate
- You have more than 1 employee
- You want the ability to reward each employee group appropriately in line with
- Your company has a steady annual income stream
- Q. What are the available investment options?
A. The plan has 20 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
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 this plan have to be established?
A. Generally, the plan has to be established before the following:
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
- For the safe harbor feature (which
is usually a part of the tiered profit sharing plan type) the plan must be established
at least 3 months before the end of the plan year
- 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
This information does not constitute tax advice. Please consult your tax adviser
for specific tax information.