Retirement savings should be within reach for every employee, full-time, part-time or hourly. Through our exclusive partnership with Transamerica, we deliver plans that are simple to save into, flexible to administer and built for prevailing wage work.
A specialized retirement solution built for prevailing wage contractors. Helps employers meet benefit obligations under the Service Contract Act and Davis-Bacon Act while creating tax-advantaged contribution opportunities for owners and key employees.
A flexible single-employer 401(k) solution available across industries and company sizes. Combines recordkeeping, compliance oversight, and third-party administration services into one fully integrated program.
Plan consolidation
Running an office 401(k) alongside a separate prevailing wage plan means two documents, two tests and two Form 5500s. We combine them into one plan, tested together at year end, or administer both and coordinate the testing.
We use the contributions already going into your employees’ accounts to cut what the company writes a check for and open room for owners and highly compensated employees.
Prevailing wage contributions count as employee deferrals, raising the NHCE average so owners and managers can max out their 401(k) with no taxable excess.
Twenty-two non-highly-compensated employees, $300,000 in prevailing wage contributions. Counting those contributions lifts the NHCE average deferral to 28.55%, so both HCEs defer the full $24,500 with zero taxable excess.
Reward specific employees without contributing for everyone. Deposited fringes offset the cost for prevailing wage employees.
Prevailing wage deposits satisfy the required contribution for the twelve PW employees, so the discretionary profit sharing goes where the owner directs it: $129,724 to the three HCEs and targeted percentages to the four non-PW employees.
Fringe dollars are already fully vested, so they count toward the required safe harbor contribution and shrink the remaining match deposit.
Prevailing wage contributions absorb nearly all of the required safe harbor match for the NHCEs, leaving $1,055 to deposit against $14,400 for the HCE. Modeling based on 2024 IRS limits.
Outcomes depend on your workforce, contribution levels and current IRS limits. We model your plan before you commit.