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Professionals
& Owners Plans |
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The
Economic Growth And Tax Relief Reconciliation Act of 2001,
the Tax Reduction Bill,created exceptional opportunities
for tax deferrals utilizing qualified plans for business
owners. Owners include sole proprietors, partners, sole
and majority shareholders of regular C, Sub S and Professional
Corporations. All plan administration, reporting and testing
requirements for “owner only” plans have been
simplified by the tax reduction bill, creating the opportunity
to reduce administrative fees. Benefit Services Group, Inc.
has developed two web based “owners only” plans
featuring very low administration fees. The business owner
will realize a deductible contribution greater than with
a SEP or Simple IRA plan, making the payment of a small
administrative fee a smart business decision. |
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The
plans: an “Owners Only” 401(k) Plan and an “Owners
Only” Defined Benefit Pension Plan,provide tax planning
opportunities based on the owner’s age, income, and
need to shelte income. |
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Professionals
& Owners Only 401(k) Plan |
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General description of the owner's 401(k) plan. |
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Professionals
& Owners DB Plan |
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General
description of the owner's DB pension plan. |
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The plans presented are for owners only. An owner’s
spouse or children may be included in the plan if they are
employed by the business. A business with non-owner employees,
or leased employees, cannot adopt these plans. These plans
cannot be adopted by organizations that are members of a controlled
group or an affiliated service group. In the event that an
owners only plan sponsor adds non-owner employees to the payroll,
the plan must be amended to a regular 401(k) or DB pension
plan. |
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All “Owners Only” plans are delivered and administered
in a paperless environment. Plan documents are maintained
on a secured website available for the business owner and
his/her advisors as needed. The annual compliance report
and 5500s (if required) will be posted to the plan sponsor’s
(business owner) secured website. The plan sponsor will
authorize the broker or financial institution funding the
plan to provide a copy of the annual account report to Benefit
Services Group, Inc. and will authorize the payment of the
disclosed administrative fees from the pension trust to
BSGI. This process eliminates extensive correspondence or
phone calls to chase records or payments and is a critical
component of the highly competitive administrative fee. |
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Although
administration is paperless, the plan sponsor is not left
to “go it alone” on a selfservice basis. BSGI
administrators and consultants will be available via phone,
fax or email to provide assistance in plan design and administration. |
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