New Comparability Plans are a popular plan design that maximize owner and key employee contributions and lower plan funding costs.
DEMOGRAPHICS |
CONTRIBUTIONS |
|||
Employee |
Age |
Salary |
Traditional Profit Sharing |
New Comparability |
Owner 1 |
53 |
$285,000 |
$55,253 |
$57,000 |
Owner 2 |
47 |
$150,000 |
$29,600 |
$57,000 |
Owner Total |
|
$435,000 |
$84,853 |
$114,000 |
Employee 1 |
40 |
$52,000 |
$10,261 |
$2,939 |
Employee 2 |
35 |
$48,000 |
$9,472 |
$2,713 |
Employee 3 |
30 |
$40,000 |
$7,893 |
$2,261 |
Employee 4 |
28 |
$35,000 |
$6,906 |
$1,978 |
Employee 5 |
25 |
$32,000 |
$6,315 |
$1,809 |
Employee Total |
$207,000 |
$40,847 |
$11,700 |
|
Grand Total |
|
$642,000 |
$125,700 |
$125,700 |