Maximum Contributions

Do the plans allow the company owners to maximize 401(k) deferrals and profit sharing contributions?
 
A qualified pension plan should allow for this. It should also help to eliminate costly and often-untimely taxable refunds if the plan fails the IRS's Average Deferral Percentage Test.

The Benestar plans may allow the owners and highly compensated employees to contribute the maximum 401(k) elective deferrals and receive the greatest amount in profit sharing contributions by using the qualified fringe benefit pension contributions in the calculations.

Beneco plan documents are user-friendly and provide these options. The Benestar plans documents allow qualified fringe benefit dollars to offset what normally would have to be paid out in profit sharing contributions to eligible prevailing wage hourly workers.

This helps employers eliminate having to pay twice into pension plans for the state and federal public work project workers, while adding potential for the maximum amounts to be allocated to the owners and the highly compensated employees.