Prevailing wage fringe can be very tricky to navigate, and the penalties for error can be very steep. Even if your current retirement plan has worked for you in the past, that doesn’t ensure that it is in fact compliant and will continue to be accepted. Take a look at these quick questions about your retirement plan:
- Is your 401(k) maximized for prevailing wage contributions?
- Does your current plan allow you to claim toward prevailing wage all of the contributions you make?
- How certain are you that your plan is 100% in compliance with all prevailing wage laws – state as well as federal?
- Are you needlessly paying out too much money in fringe, or paying it in cash?
- Have you had an employee quit to get their money out of the retirement plan?
- How does your plan handle in-service withdrawals?
- If you do a match subject to a vesting schedule, are you able to count it towards prevailing wage?
- Is your prevailing wage contribution eligible for a hardship withdrawal?
It is possible to ease the administration workload associated with your 401(k) and prevailing wage calculations. Most of these concerns can be addressed with a simple examination of your adoption agreement. Give me a call at the office 859-523-4110 or on my cell phone 859-321-1557 to schedule a time to get together. Consultations are always free and without further obligation.
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