Have your highly compensated employees (HCEs) ever received a 401(k) refund — complete with taxes and penalties? Are you frustrated by how little you can put into your company's 401(k) plan due to nondiscrimination testing requirements? Participation for owners and HCEs in company 401(k) plans is often extremely limited due to strict IRS rules.

At The Contractors Plan, we analyze your company and your prevailing wage contributions to ensure you are getting the most from your retirement plan. Since we specialize in prevailing wage retirement plans, we know how to use prevailing wage contributions made to your employees' retirement accounts to provide the most benefit to your HCEs and key employees.

We can reduce your overall retirement plan expense while increasing the amount of tax-deductible match or profit sharing contributions you can allocate to yourself and other key employees. Our goal is to ensure you receive all the benefits you are entitled to under the law.

Retirement Plan Options:

• Basic Prevailing Wage Plan - These plans contain only prevailing wage contributions and do not allow for employee elective deferrals or other types of employer contributions.
• 401(k) - By counting prevailing wage contributions as elective deferrals, owners and HCEs increase their own contributions.
• Optional Roth 401(k) - Contributions are taxed now, but can be withdrawn tax-free at retirement.
• Safe Harbor 401(k) - Use prevailing wage contributions to offset safe-harbor employer amounts so owners and HCEs can defer the maximum elective deferrals.
• Discretionary Match - Prevailing wage contributions can be counted toward match contributions for employees, reducing the cost to maintain a traditional 401(k) plan.
• Profit Sharing - Prevailing wage contributions can be counted toward profit sharing contributions for employees, drastically reducing costs.
• New Comparability - New Comparability profit sharing plans allow companies to designate higher employer contributions to select classes of employees, which enables owners and HCEs to contribute the maximum allowed under law to their own retirement accounts.