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Definintely Determinable Does the qualified pension benefit plan meet the IRS definition of being Definitely Determinable?
While all qualified plans must be definitely determinable, special definitely determinable requirements apply to prevailing wage work with medical benefits and/or various wage rates.
If done correctly, the employer has the freedom to discriminate between projects and between classes for which the company desires to provide benefits.
Beneco Benestar plans pass this test and allow the employer to determine the amount of fringe benefit dollars that will be paid into the plan for each class of workers and on which project he chooses.
The Benestar plans qualify workers as follows :
- Single employee (ee) with medical
- Married (ee) plus one with medical
- Married (ee) with family medical
The above schedule assures that the pension benefits are definitely determinable for each class of worker and should pass an IRS audit regarding this.
Another advantage to an employer with the freedom to definitely determine benefits is that the qualified non-elective contributions paid with fringe benefit dollars do not have to be the same amount for each employee.
This becomes important to leverage the amount that Highly Compensated Employees (HCE) can contribute a to tax deferred 401(k) elective deferral accounts.
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