Plan Design: The Lost Art of Differentiation
ASPPA 401(k) Summit – March 2012

Presented by Steve Glasgow, Avondale Partne...
Obligatory Opening Disclaimer
The views expressed by the speakers are their
own and do not necessarily represent the views...
Setting the Stage
HCEs & Nondiscrimination
 Nondiscrimination testing to ensure Highly
Compensated Employee (“HCE”) benefits not
disproport...
Key Employees & Top Heavy Plans
 Plan is top heavy when more than 60% of plan
assets belong to key employees

 Key emplo...
Counting Service
Counting Service
 Statutory eligibility requirements
 Attainment of age 21
 Completion of 1 Year of Service
• 12 months...
Actual Hours
 Hours during which an employee performs
services

 Hours for which an employee is entitled to
payment
 Va...
Elapsed Time
 Does not measure hours worked
 Credit given for a year of service if employee still
employed 12 months aft...
Equivalency Method
 Based on periods of employment
 Day = 10 hours

 Week = 45 hours
 Semi-monthly pay period = 95 hou...
Example
 Paul Participant
 Date of hire = January 1, 2012

 Date of termination = February 29, 2012
 Date of rehire = ...
Example
 Paul Participant
 Actual hours
• Add together hours worked for each period of
employment

 Elapsed time
• Cred...
Excluding Employees
Ratio Percentage Test
 Test designed to verify a plan covers a
nondiscriminatory number of NHCEs
 Head count
 Does not ...
Types of Workers
 Common law employees
 Contingent workers
 Independent contractors
 Leased employees

 Other than fu...
Defining Employee Exclusions
 Permitted based on valid job classification
 Title or job function

 Location or division...
Defining Employee Exclusions
 Country club
 Seasonal workers, or

 Grounds-keepers and concessionaires

 Students
 In...
Slippe, Fol & Sioux, LLP
 30 partners
 Half are HCE based on ownership

 All HCE based on comp

 15 associates
 10 HC...
Slippe, Fol & Sioux, LLP
 Exclude associates
 HCE coverage ratio
 Total HCEs = 41
 HCEs covered = 31
 Ratio = 75.61%
...
Is There Something Better?
 Include associates
 Cap deferrals at a level that facilitates passing
ADP test
 Deferral pe...
But Wait, There’s More…
 Associates have high average deferral rate
 Can that somehow help the ADP test?

 Consider top...
Now How Much Would You Pay?
Safe Harbor 401(k) Plans
Safe Harbor 401(k) Plans
 Plan design that provides for automatic passage
of ADP test

 Minimum employer contribution re...
Safe Harbor 401(k) Plans
 Matching contribution
 100% of the first 3% of deferrals, plus

 50% of the next 2% of deferr...
Implementation
 Existing 401(k) plans
 Must be added at the start of a plan year

 Amendment must be signed prior to th...
I Love Rock N Roll, Inc.
 Plan consistently fails ADP test
 HCE ADP = 10%

 NHCE ADP = 4%

 Is Safe Harbor 401(k) the ...
Non-HCE Group
Name

Comp

Deferrals

ADP

Mick

$100,000

$10,000

10.00%

Stephen

$ 90,000

$10,000

11.11%

Ringo

$ 80...
Safe Harbor Nonelective (3%)
Name

Comp

Deferrals

ADP

Nonelective

Mick

$100,000

$10,000

10.00%

$ 3,000

Stephen

$...
Safe Harbor Match (Basic)
Name

Comp

Deferrals

ADP

SH Match

Mick

$100,000

$10,000

10.00%

$ 4,000

Stephen

$ 90,00...
Targeted QNEC
Name

Comp

Deferrals

QNEC %

QNEC $

Mick

$100,000

$10,000

0.00%

$

0

Stephen

$ 90,000

$10,000

0.0...
I Love Rock N Roll, Inc.
 Failed ADP test
 HCE ADP = 10%

 NHCE ADP = 4%

 Options
 Pro rata QNEC = $595,000 x 4% = $...
Methods for Allocating
Nonelective Contributions
Allocation Methods
 Design-based safe harbor allocation methods
 Per capita method

 Pro rata method
 Permitted dispar...
Per Capita & Pro Rata Methods
 Per capita
 Uniform dollar amount allocated to each eligible participant

 NHCEs (almost...
Per Capita & Pro Rata Methods
Age

Annual
Comp

Per Capita
($)

Per
Capita
(%)

Pro Rata
($)

Pro
Rata
(%)

Owner #1

51

...
Permitted Disparity Method
 Considers that SS benefits are paid only on
compensation below the social security wage
base
...
Permitted Disparity Method
 Base contribution
percentage applies to
all comp

$250

 Excess contribution
percentage appl...
Permitted Disparity Method
Age

Annual
Comp

Base
Allocation
(16.8%)

Excess
Comp

Excess
Allocatio
n (5.7%)

Total
Alloca...
Using The Time Value of Money

$100,000

$2,875/year

Age
65

$100,000

Age
65

Age 30

$10,000/year

Age 55
New Comparability Method
 Divide participants into groups and allocate prorata within each group
 Valid business classif...
New Comparability Method
Age

Annual Comp

Total
Allocation

Percentage of
Comp

Owner #1

51

$250,000

$50,000

20.0%

O...
Comparison of Methods
Annual
Comp

Per Capita

Pro Rata

Permitted
Disparity

New Comp

Owner #1

$250,000

$20,500

$50,0...
New Comp…It Isn’t Just To Max HCEs
 Plan sponsor transferring out of group annuity
contract
 Facing surrender charge
 W...
Safe Harbor + New Comp
Annual
Comp

401(k)
Deferrals

SH Base
(3%)

New Comp
(10.2%/1.5%
)

Total
Employer
Allocation

Tot...
Safe Harbor Match x 3
Annual
Comp

401(k)
Deferrals

SH Match

Disc. Match
(66.67% x
6%)

Fixed
Match
(86.7% x
6%)

Total
...
Cash Balance Plan
$250

Thousands

$200
$200

$150

$209

$143
$103

$100
$38

$75

$52

$50
$-

Age 35
Deferrals

40

45
...
Salvage Yard
 3 owners earning $450k each
 4 spouses and children
 32 other employees
 Current plan is safe harbor
401...
Salvage Yard
Current Plan
Group

#

Per Participant

Total

Owners

3

$50,000

$150,000

Family

4

$ 5,000

$ 20,000

Em...
Salvage Yard
Cash Balance Plan

Combined
Per
Participant

#

Cash Balance
Per
Participant

Owners

3

$100,000

$300,000

...
Questions?
Steven W. Glasgow, CFA, CIMA, AIF, PRP
Senior Vice President, Private Client Group
Avondale Partners, LLC
615.3...
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Plan Design - The Lost Art of Differentiation

  1. 1. Plan Design: The Lost Art of Differentiation ASPPA 401(k) Summit – March 2012 Presented by Steve Glasgow, Avondale Partners, LLC Adam C. Pozek, DWC ERISA Consultants, LLC
  2. 2. Obligatory Opening Disclaimer The views expressed by the speakers are their own and do not necessarily represent the views of any person, living or dead, real or fictitious, short or tall, male or female, religious or atheist, with a full head of hair or…well, you get the point. No people or animals were harmed in the making of this presentation.
  3. 3. Setting the Stage
  4. 4. HCEs & Nondiscrimination  Nondiscrimination testing to ensure Highly Compensated Employee (“HCE”) benefits not disproportionate to Non-HCE (“NHCE”) benefits  Must meet one of two tests to be HCE  5% owner test  Compensation test  Top paid group election  Employees not meeting one of these tests are NHCEs
  5. 5. Key Employees & Top Heavy Plans  Plan is top heavy when more than 60% of plan assets belong to key employees  Key employees are generally the owners and officers  Minimum required contribution to non-key employees equal to the lesser of…  3% of compensation, or  The highest percentage allocated to any key employee
  6. 6. Counting Service
  7. 7. Counting Service  Statutory eligibility requirements  Attainment of age 21  Completion of 1 Year of Service • 12 months + 1,000 hours  Counting methods  Actual hours  Equivalency  Elapsed time
  8. 8. Actual Hours  Hours during which an employee performs services  Hours for which an employee is entitled to payment  Vacation  Sick leave  Jury duty  Military service  Leave of absence  Hours related to an award of back pay
  9. 9. Elapsed Time  Does not measure hours worked  Credit given for a year of service if employee still employed 12 months after hire date
  10. 10. Equivalency Method  Based on periods of employment  Day = 10 hours  Week = 45 hours  Semi-monthly pay period = 95 hours  Month = 190 hours  Based on working time  870 hours worked = credit for 1,000 hours  750 regular time hours worked = credit for 1,000 hours
  11. 11. Example  Paul Participant  Date of hire = January 1, 2012  Date of termination = February 29, 2012  Date of rehire = August 1, 2012  Date of termination = September 15, 2012  Date of rehire = December 10, 2012
  12. 12. Example  Paul Participant  Actual hours • Add together hours worked for each period of employment  Elapsed time • Credited with YOS on December 31, 2012  Monthly equivalency • 5 months x 190 hours per month = 950 ≠ YOS
  13. 13. Excluding Employees
  14. 14. Ratio Percentage Test  Test designed to verify a plan covers a nondiscriminatory number of NHCEs  Head count  Does not consider the amount of benefits  NHCE coverage => 70% of HCE coverage  Plan has 4 HCEs and 10 NHCEs  Assume 2 HCEs are excluded from coverage • 2/4 = 50% • 70% x 50% = 35% • Plan must cover 4 NHCEs (35% x 10 = 3.5)
  15. 15. Types of Workers  Common law employees  Contingent workers  Independent contractors  Leased employees  Other than full time     Temporary workers Part-timers Seasonal employees Per diem employees  Other  Collectively bargained employees  Davis Bacon employees
  16. 16. Defining Employee Exclusions  Permitted based on valid job classification  Title or job function  Location or division  Hourly or salaried  Not permitted if indirectly based on service  Temporary  Seasonal  Normally scheduled to work less than…  See Employee Plans QAB FY-2006 No. 3
  17. 17. Defining Employee Exclusions  Country club  Seasonal workers, or  Grounds-keepers and concessionaires  Students  Interns  Full-time vs. part-time  Undergraduate vs. graduate vs. continuing education
  18. 18. Slippe, Fol & Sioux, LLP  30 partners  Half are HCE based on ownership  All HCE based on comp  15 associates  10 HCE based on comp  5 NHCEs  60 staff  1 HCE based on comp  59 non-HCEs
  19. 19. Slippe, Fol & Sioux, LLP  Exclude associates  HCE coverage ratio  Total HCEs = 41  HCEs covered = 31  Ratio = 75.61%  Required NHCE coverage  70% x 75.61% = 52.93%  64 NHCEs x 52.93% = 33.88 = 34  Can exclude total of 30 NHCEs
  20. 20. Is There Something Better?  Include associates  Cap deferrals at a level that facilitates passing ADP test  Deferral percentages  30 partners = $17k deferral/$250k comp = 6.8%  10 associates = deferral cap of 1%  1 staff = $17k deferral/$150k comp = 11.33%  HCE average = 5.49%
  21. 21. But Wait, There’s More…  Associates have high average deferral rate  Can that somehow help the ADP test?  Consider top paid group election  105 employees x 20% = 21 HCEs • • • • 21 partners = HCEs 9 partners = NHCEs 15 associates = NHCEs 60 staff = NHCEs
  22. 22. Now How Much Would You Pay?
  23. 23. Safe Harbor 401(k) Plans
  24. 24. Safe Harbor 401(k) Plans  Plan design that provides for automatic passage of ADP test  Minimum employer contribution required  Participant notice required 30 – 90 days prior to start of each plan year  Two “traditional” options  Two automatic enrollment options
  25. 25. Safe Harbor 401(k) Plans  Matching contribution  100% of the first 3% of deferrals, plus  50% of the next 2% of deferrals  Base contribution  3% of compensation  Immediate vesting required
  26. 26. Implementation  Existing 401(k) plans  Must be added at the start of a plan year  Amendment must be signed prior to the start of the plan year  Startups and non-401(k) plans  Initial year must include safe harbor for at least 3 months  Implementation no later than October 1st for a calendar year plan  Amendment must be signed prior to implementation
  27. 27. I Love Rock N Roll, Inc.  Plan consistently fails ADP test  HCE ADP = 10%  NHCE ADP = 4%  Is Safe Harbor 401(k) the best option?
  28. 28. Non-HCE Group Name Comp Deferrals ADP Mick $100,000 $10,000 10.00% Stephen $ 90,000 $10,000 11.11% Ringo $ 80,000 $ 0 0.00% Iggy $ 70,000 $ 5,000 7.14% Grace $ 50,000 $ 1,500 3.00% Jimi $ 50,000 $ 5,000 10.00% Brittany $ 40,000 $ 0 0.00% Paula $ 40,000 $ 400 1.00% Bono $ 40,000 $ 0 0.00% Sid $ 20,000 $ 350 1.75% Bob $ 15,000 $ 0 0% $595,000 $32,250
  29. 29. Safe Harbor Nonelective (3%) Name Comp Deferrals ADP Nonelective Mick $100,000 $10,000 10.00% $ 3,000 Stephen $ 90,000 $10,000 11.11% $ 2,700 Ringo $ 80,000 $ 0 0.00% $ 2,400 Iggy $ 70,000 $ 5,000 7.14% $ 2,100 Grace $ 50,000 $ 1,500 3.00% $ 1,500 Jimi $ 50,000 $ 5,000 10.00% $ 1,500 Brittany $ 40,000 $ 0 0.00% $ 1,200 Paula $ 40,000 $ 400 1.00% $ 1,200 Bono $ 40,000 $ 0 0.00% $ 1,200 Sid $ 20,000 $ 350 1.75% $ 600 Bob $ 15,000 $ 0 0% $ 450 $595,000 $32,250 $17,850
  30. 30. Safe Harbor Match (Basic) Name Comp Deferrals ADP SH Match Mick $100,000 $10,000 10.00% $ 4,000 Stephen $ 90,000 $10,000 11.11% $ 3,600 Ringo $ 80,000 $ 0 0.00% $ Iggy $ 70,000 $ 5,000 7.14% $ 2,800 Grace $ 50,000 $ 1,500 3.00% $ 1,500 Jimi $ 50,000 $ 5,000 10.00% $ 2,000 Brittany $ 40,000 $ 0 0.00% $ 0 Paula $ 40,000 $ 400 1.00% $ 400 Bono $ 40,000 $ 0 0.00% $ 0 Sid $ 20,000 $ 350 1.75% $ 350 Bob $ 15,000 $ 0 0% $ 0 $595,000 $32,250 0 $14,650
  31. 31. Targeted QNEC Name Comp Deferrals QNEC % QNEC $ Mick $100,000 $10,000 0.00% $ 0 Stephen $ 90,000 $10,000 0.00% $ 0 Ringo $ 80,000 $ 0 0.00% $ 0 Iggy $ 70,000 $ 5,000 0.00% $ 0 Grace $ 50,000 $ 1,500 0.00% $ 0 Jimi $ 50,000 $ 5,000 6.25% $ 3,125 Brittany $ 40,000 $ 0 6.25% $ 2,500 Paula $ 40,000 $ 400 6.25% $ 2,500 Bono $ 40,000 $ 0 6.25% $ 2,500 Sid $ 20,000 $ 350 6.50% $ 1,300 Bob $ 15,000 $ 0 12.50% $ 1,875 $595,000 $32,250 $13,800
  32. 32. I Love Rock N Roll, Inc.  Failed ADP test  HCE ADP = 10%  NHCE ADP = 4%  Options  Pro rata QNEC = $595,000 x 4% = $23,800  Safe Harbor NEC = $17,850  Safe Harbor Match = $14,650  Targeted QNEC = $13,800
  33. 33. Methods for Allocating Nonelective Contributions
  34. 34. Allocation Methods  Design-based safe harbor allocation methods  Per capita method  Pro rata method  Permitted disparity method (a/k/a Social Security integration)  General-tested allocation methods  Age-weighted method  New comparability method (a/k/a cross-testing)
  35. 35. Per Capita & Pro Rata Methods  Per capita  Uniform dollar amount allocated to each eligible participant  NHCEs (almost) always receive larger percentage of pay than HCEs  Pro rata  Uniform percentage of pay allocated to each eligible participant
  36. 36. Per Capita & Pro Rata Methods Age Annual Comp Per Capita ($) Per Capita (%) Pro Rata ($) Pro Rata (%) Owner #1 51 $250,000 $20,500 8.20% $50,000 20% Owner #2 49 $250,000 $20,500 8.20% $50,000 20% Manager #1 55 $ 80,000 $20,500 25.63% $16,000 20% Manager #2 48 $ 50,000 $20,500 41.00% $10,000 20% Manager #3 42 $ 45,000 $20,500 45.56% $9,000 20% Staff #1 38 $ 40,000 $20,500 51.25% $8,000 20% Staff #2 46 $ 30,000 $20,500 68.33% $6,000 20% Staff #3 32 $ 30,000 $20,500 68.33% $6,000 20% Staff #4 42 $ 23,000 $20,500 89.13% $4,600 20% Staff #5 25 $ 22,000 $20,500 93.18% $4,400 20% Total $820,000 $205,000 $164,000 Owners’ % of Total 60.98% 20.0% 60.98%
  37. 37. Permitted Disparity Method  Considers that SS benefits are paid only on compensation below the social security wage base  Allows additional contributions on pay exceeding a set level  Usually the wage base  May be a percentage of the wage base  May be a fixed dollar amount  Must be specified in plan document
  38. 38. Permitted Disparity Method  Base contribution percentage applies to all comp $250  Excess contribution percentage applies to comp>wage base Excess $139.9k Base  Usually capped at • 5.7%, or • Base percentage $110.1k $-
  39. 39. Permitted Disparity Method Age Annual Comp Base Allocation (16.8%) Excess Comp Excess Allocatio n (5.7%) Total Allocatio n Percentage of Comp Owner #1 51 $250,000 $139,900 $42,026 $7,974 $50,000 20.0% Owner #2 49 $250,000 $139,900 $42,026 $7,974 $50,000 20.0% Manager #1 55 $ 80,000 $ 0 $13,428 $ 0 $13,428 16.8% Manager #2 48 $ 50,000 $ 0 $8,392 $ 0 $8,392 16.8% Manager #3 42 $ 45,000 $ 0 $7,553 $ 0 $7,553 16.8% Staff #1 38 $ 40,000 $ 0 $6,714 $ 0 $6,714 16.8% Staff #2 46 $ 30,000 $ 0 $5,035 $ 0 $5,035 16.8% Staff #3 32 $ 30,000 $ 0 $5,035 $ 0 $5,035 16.8% Staff #4 42 $ 23,000 $ 0 $3,861 $ 0 $3,861 16.8% Staff #5 25 $ 22,000 $ 0 $3,693 $ 0 $3,693 16.8% Total $820,000 279,800 $137,763 $15,948 $153,711 Owners’ % of Total 60.98% 100% 60.98% 100% 65.06%
  40. 40. Using The Time Value of Money $100,000 $2,875/year Age 65 $100,000 Age 65 Age 30 $10,000/year Age 55
  41. 41. New Comparability Method  Divide participants into groups and allocate prorata within each group  Valid business classifications  Each participant in his/her own group  Groups must be defined in the plan document  Be careful with definitions  Minimum NHCE “gateway” contribution equal to the lesser of…  5% of compensation  1/3 the highest percentage allocated to any HCE
  42. 42. New Comparability Method Age Annual Comp Total Allocation Percentage of Comp Owner #1 51 $250,000 $50,000 20.0% Owner #2 49 $250,000 $50,000 20.0% Manager #1 55 $ 80,000 $5,200 6.5% Manager #2 48 $ 50,000 $3,250 6.5% Manager #3 42 $ 45,000 $2,925 6.5% Staff #1 38 $ 40,000 $2,600 6.5% Staff #2 46 $ 30,000 $1,950 6.5% Staff #3 32 $ 30,000 $1,950 6.5% Staff #4 42 $ 23,000 $1,495 6.5% Staff #5 25 $ 22,000 $1,430 6.5% Total $820,000 $120,800 Owners’ % of Total 60.98% 82.78%
  43. 43. Comparison of Methods Annual Comp Per Capita Pro Rata Permitted Disparity New Comp Owner #1 $250,000 $20,500 $50,000 $50,000 $50,000 Owner #2 $250,000 $20,500 $50,000 $50,000 $50,000 Manager #1 $ 80,000 $20,500 $16,000 $13,428 $5,200 Manager #2 $ 50,000 $20,500 $10,000 $8,392 $3,250 Manager #3 $ 45,000 $20,500 $9,000 $7,553 $2,925 Staff #1 $ 40,000 $20,500 $8,000 $6,714 $2,600 Staff #2 $ 30,000 $20,500 $6,000 $5,035 $1,950 Staff #3 $ 30,000 $20,500 $6,000 $5,035 $1,950 Staff #4 $ 23,000 $20,500 $4,600 $3,861 $1,495 Staff #5 $ 22,000 $20,500 $4,400 $3,693 $1,430 $820,000 $205,000 $164,000 $153,711 $120,800 60.98% 20.0% 60.98% 65.06% 82.78%
  44. 44. New Comp…It Isn’t Just To Max HCEs  Plan sponsor transferring out of group annuity contract  Facing surrender charge  Wants to make participants whole via contribution  Allocation basis potentially problematic  Surrender charge allocated pro rata on account balance  Contribution allocated on???  Amend contribution allocation to new comp with each participant in separate group  Make whole contribution  Active NHCEs
  45. 45. Safe Harbor + New Comp Annual Comp 401(k) Deferrals SH Base (3%) New Comp (10.2%/1.5% ) Total Employer Allocation Total Allocation Owner #1 $250,000 $17,000 $7,500 $25,500 $33,000 $50,000 Owner #2 $250,000 $17,000 $7,500 $25,500 $33,000 $50,000 Manager #1 $ 80,000 $ 4,000 $2,400 $1,200 $ 3,600 $ 7,600 Manager #2 $ 50,000 $ 1,000 $1,500 $ 750 $ 2,250 $ 3,250 Manager #3 $ 45,000 $ 0 $1,350 $ 675 $ 2,025 $ 2,025 Staff #1 $ 40,000 $ 0 $1,200 $ 600 $ 1,800 $ 1,800 Staff #2 $ 30,000 $ 0 $ 900 $ 450 $ 1,350 $ 1,350 Staff #3 $ 30,000 $ 0 $ 900 $ 450 $ 1,350 $ 1,350 Staff #4 $ 23,000 $ 0 $ 690 $ 345 $ 1,035 $ 1,035 Staff #5 $ 22,000 $ 1,000 $ 660 $ 330 $ 990 $ 1,990 $820,000 $40,000 $24,600 $55,800 $80,400 $120,400 60.5% 85.0% 61.0% 91.4% 82.1% 83.1%
  46. 46. Safe Harbor Match x 3 Annual Comp 401(k) Deferrals SH Match Disc. Match (66.67% x 6%) Fixed Match (86.7% x 6%) Total Match Total Allocation Owner #1 $250,000 $17,000 $10,000 $10,000 $13,000 $33,000 $50,000 Owner #2 $250,000 $17,000 $10,000 $10,000 $13,000 $33,000 $50,000 Manager #1 $ 80,000 $ 4,000 $3,200 $2,667 $ 3,467 $ 9,334 $13,334 Manager #2 $ 50,000 $ 1,000 $1,000 $ 667 $ 867 $ 2,534 $ 3,534 Manager #3 $ 45,000 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Staff #1 $ 40,000 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Staff #2 $ 30,000 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Staff #3 $ 30,000 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Staff #4 $ 23,000 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Staff #5 $ 22,000 $ 1,000 $ 830 $ 667 $ 867 $ 2,364 $ 3,364 $820,000 $40,000 $25,030 $24,001 $31,201 $80,232 $120,232 60.5% 85.0% 79.9% 83.3% 83.3% 82.3% 83.2%
  47. 47. Cash Balance Plan $250 Thousands $200 $200 $150 $209 $143 $103 $100 $38 $75 $52 $50 $- Age 35 Deferrals 40 45 Catch-Up 50 Profit Sharing 55 60 Cash Balance 65
  48. 48. Salvage Yard  3 owners earning $450k each  4 spouses and children  32 other employees  Current plan is safe harbor 401(k) with new comp
  49. 49. Salvage Yard Current Plan Group # Per Participant Total Owners 3 $50,000 $150,000 Family 4 $ 5,000 $ 20,000 Employees 32 4.5% of Pay $ 55,262 Totals 39 $225,262
  50. 50. Salvage Yard Cash Balance Plan Combined Per Participant # Cash Balance Per Participant Owners 3 $100,000 $300,000 Family 4 $ $ Employees 32 Totals 39 Group Owner & Family Percent of Total 0 1.5% of Pay Cash Balance Total Combined Total $150,000 $450,000 0 $5,000 $ 20,000 $ 18,421 6% of Pay $ 73,683 $318,421 $543,683 94.2% 86.4%
  51. 51. Questions? Steven W. Glasgow, CFA, CIMA, AIF, PRP Senior Vice President, Private Client Group Avondale Partners, LLC 615.312.7132 www.linkedin.com/pub/stevenglasgow-cfa-cima-aif-prp/8/a2/726 Sglasgow@AvondalePartnersLLC.com www.AvondalePartnersLLC.com Adam C. Pozek, ERPA, QPA, QPFC Partner DWC ERISA Consultants, LLC 651.204.2600 ext. 107 www.linkedin.com/in/adampozek Adam.Pozek@DWCConsultants.com Twitter.com/PozekOnPension www.DWCConsultants.com www.PozekOnPension.com DWCAdamPozek AdamCPozek

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