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The Defined Benefit plans is one of the oldest and yet newest type of retirement plans. These plans can be used to maximize deductions when used in combination with a Defined Contribution Plan. W&A, Inc,. provides all of the services necessary to adopt, administer and amend this kind of retirement plan.
Plan Provisions
Defined benefit plans define a benefit payable at retirement. The employer then funds the plan to provide the benefit. Any asset return is borne by the employer. If the return exceeds the plan assumption, the cost of the plan is reduced. If the actual return is less than the assumed return, the employer funds the additional amounts. Employees who leave prior to retirement will help to provide benefits for the employees who remain. These plans are not subject to the 25% of pay contribution limitations that limit funding to defined contribution plans. The limitation on funding is set by the benefits that are being provided. This allows for much larger potential deductions to be taken in this style of plan.
Services
The W&A, Inc. defined benefit program provides the employer with the ability to effectively communicate with its employees and to inform employees of their benefits under the plan. The program includes professional plan administration, compliance, consulting, communications, and state of the art voice response capabilities.
Plan Administration
W&A, Inc. provides the employer with a plan administrator who is assigned to the plan. Every detail of the plan will be handled by that administrator and his assistant. The administrator is required to attend educational courses, seminars and to pass professional exams in order to provide for on-going professional administration.
Compliance
Your assigned plan administrator is constantly studying the latest regulations from the Department of Labor, the Internal Revenue Service and other governmental agencies in order to keep up with the ever changing nature of Qualified Plan Compliance. We can also do the FASB and GASB reporting that is required on some plans.
Consulting
As part of the routine service provided by W&A, Inc., a consultant and a plan administrator are available to help with questions concerning plan design and interpretation, tax law changes, and be available for consultations.
Communications
The art of communications is often the most difficult part of any plan. The consultant, Administrator and support staff assigned to your plan are trained to respond to questions and communicate to both employers and plan participants in language that is easy to understand.