401(k) Savings Plans

A 401(k) Plan allows employees to contribute pre-tax dollars, reducing taxable salary, with both the contributions and earnings growing tax-deferred until withdrawal. The employer has the option of matching the employee’s deferral in some degree and also making a profit sharing contribution. Also, employee loans may be available if the plan allows them, Money can generally be withdrawn from the plan at retirement, at termi¬nation of employment, in case of death, and in case of disability.

CRS offers a wide array of services for our clients through our 401(k) Savings Plans, including:

• Numerous 401(k) plan options, suitable for your specific needs and size
• Valuation of participant accounts
• Extensive employee education - Motivation to participate and investment basics
• Superb enrollment materials
• Complete discrimination testing and government reporting
• Participant statements
• Highly experienced administrators

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Cafeteria Plans

A Cafeteria Plan is an excellent means under current law for providing your employees with the optimum in fringe benefits while saving you and your employees hundreds, possibly thousands of dollars in taxes. A Cafeteria Plan is a written plan in which participating employees can select qualifying benefits from a "menu" of choices.

Your plan can include all or any combination of health insurance premiums, medical expenses not covered by insurance, typical expenses (e.g., eyeglasses, dental expenses, medical examinations, and insurance deductibles), adult and child day care expenses, other insurance coverages (including dental insurance premiums, disability and accident benefits, and group term life insurance premiums), and qualified adoption expenses.

Your company can save money on social security taxes, insurance premiums, and your company's health insurance cost can be lowered by combining certain changes to your health plan with the installation of a Cafeteria Plan.

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Defined Benefit Plans

Defined Benefit Plans are traditional qualified retirement plans, providing owners and employees with a predetermined retirement income from retirement until death of the participant and his/her designated beneficiary.

These plans are particularly beneficial if you are nearing retirement, and/or you want to accumulate a large sum of money for retirement and your business has a small workforce with mostly young employees

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Medical Savings Accounts combine high-deductible major medical insurance with a tax-free savings account. Money deposited into the savings account is used to help pay the major medical deductible. After the deductible level is attained, the insurance starts paying. Money left over in the savings account is for the account-holder to keep.

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Money Purchase Pension Plans

Mney Purchase Pension Plans provide excellent flexibility for many of our client’s com¬panies, while offering an attractive option for their employees. With these plans, the employer agrees to fund the qualified retirement plan with a fixed percentage of the employee compensation every year. The only downside for employees is that they cannot make their own pre-tax contributions.

As a defined contribution plan, Money Purchase Pension Plans act as a qualified tax-advantaged savings account in which the amount of retirement funds available depends on how much pre-tax money your business contributes to the plan, and how well or poorly the invested funds perform over the years. As a qualified plan, certain reports must be filed with the IRS and the Department of Labor.

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Profit Sharing Plans

A key aspect of a Profit Sharing Plan is flexibility — employers are allowed to declare contributions at their own discretion. Each year the employer determines the amount of contributions. Contributions are allocated to eligible participants based on compensation. The maximum contribution is 15% (25% after 2001) of covered compensation subject to a compensation cap per participant. All contributions are tax deductible.

These plans help to attract and retain valuable employees. Earnings on contributions are tax-deferred until distribution. Employee loans may be available if the plan allows them. Money can generally be withdrawn from the plan at retirement, at termination of employment, in case of death, and in case of disability.

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