Plan Design
We often think of our Third Party Administrator’s primary responsibility as compliance with DOL and IRS regulations. All of those compliance issues begin with how your qualified Profit Sharing Plan is originally designed and as time goes on how it may be modified and amended.
As a business owner working with your Trilogy Advisor your Profit Sharing Plan design may also be the biggest opportunity you have to maximize your own pre-tax retirement plan savings. It may also be the biggest pre-tax retirement savings opportunity that you can offer your employees. This single “tax leverage” structure is considered by many to be the top chance that the IRS offers to reduce taxable income and potentially fund long term investment and savings goals.
Your Trilogy Advisor will work with you and your other advisors to understand the new “comparability” or cross tested plan design options that may provide owners a means to maximize personal contributions while minimizing funding costs. This design structure may also permit a “tiered” plan to target rewards to key employees. Both the tax deduction and the tax deferral of the plan are powerful investment and compounding tools. Trilogy can work with your TPA or recommend a TPA who uses this strategy and can structure your plan in a manner that is designed to help pass the required non-discrimination tests each year. To learn more about one of the TPA professionals Trilogy has found to be truly outstanding read more.