More and more small, professional companies are interested in new comparability, or cross-tested, plans.
As DWC partner Adam Pozek explains in PLAN ADVISER, this type of profit-sharing plan allows a sponsor to divide employees into different groups and project what a current contribution would amount to at retirement age. This opens up the possibility of rewarding specific employees with higher-dollar contributions.
If that sounds perfect for your law or engineering firm, you'll want to read on. Though new comparability plans can reward employees for their longevity or seniority, there are complexities to consider as well.
The views expressed in this blog are those of the authors and do not necessarily represent the views of any other person or organization. All content is provided for informational purposes only and is not intended to be tax or legal advice.
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