Plan design is the way in which a Plan Sponsor establishes their plan's key features, such as eligibility period, vesting schedule, employer matching contribution, withdrawal options, and loans. Establishing the most appropriate plan design can result in improved testing and better participation among employees.

One strategy is to offer a Safe Harbor 401(k) plan. This type of plan design offers Plan Sponsors a simplified approach to compliance tests. Safe Harbor 401(k) plans allow a company's Highly Compensated Employees (HCE) to contribute the maximum limit each year no matter how the plan's participation fares.  This strategy works extremely well for some companies and definitely simplifies things for Plan Sponsors.

Many companies also choose to reward their long-term employees with a profit sharing contribution.  But what plan design is best suited for your company? There are many different ways to structure a profit-sharing contribution based on age, income, length of service, and role within the company.  With nothing more than a census, we can make this a simple task and show you all your company's options. 

There are literally dozens of different ways to structure your company's plan design.  We have the expertise and experience to ensure that you are considering all the options when you establish your plan.

Fixed insurance products and services offered by The Insurance Exchange are separate and unrelated to Commonwealth.