Plan Proposal/Design
Summit has the ability to prepare side-by-side comparison proposals using our software, Relius Proposal, to determine the most appropriate plan to meet the needs of both the owner/employer and the employees. We understand the details involved in creating a desirable retirement plan; therefore, we take the necessary time to meet with you one on one before and after developing your plan proposal to review different aspects including employer costs and tax effects.

Plan Documents
As a Corbel Prototype sponsor, we are able to create plan documents in-house, along with summary plan description booklets for participants. After the initial plan set-up meeting, each employer will receive a binder including the plan document, adoption agreement, summary plan description and administrative forms for their customized retirement plan. Summit also provides annual document maintenance, along with the ability to create amendments to your plan as needed.

Distribution Requests
Distributions may be taken from your retirement plan for several reasons: hardship, termination, retirement or death. At the request of an employer/participant, we will determine whether the need for the distribution is permitted. Upon approval, the distribution paperwork will need to be completed by the participant and employer before processing the request. A notice regarding the tax effects should be given to you prior to completing the paperwork. Distributions are processed as soon as administratively feasible, usually within 7-10 days.  

401(k)
This type of plan allows a dollar amount/percentage of gross wages, predetermined by the participant, to be contributed to the retirement plan before taxes. The amount deferred annually is restricted by law but is increased by the government each year to adjust for the cost of living. Employers may make additional matching contributions at their discretion and participants age 50 or older can make catch-up contributions up to the government limit. 401(K) plans also require non-discrimination testing.

Profit Sharing
Profit sharing plans allow discretionary employer contributions that are subject to a vesting schedule set by the employer.  

Safe Harbor
Safe harbor plans allow deferral contributions up to the government limit along with a mandatory employer-match contribution. The employer may choose to make a 3% match to all eligible participants or match dollar-for-dollar up to 3% plus 50% of up to the next 2% of employee deferrals. There is no required testing for these plans because all participants are 100% vested in the safe harbor contributions.  

Defined Benefit
Defined benefit plans pre-define the monthly benefit to those participants eligible to retire using calculations that take life expectancy into account. The employer has minimum funding requirements; however, they generally contribute more than to other types of plans. An advantage to this plan is that there are minimal risks involved since benefits are not dependent on asset returns. Our professional relationship with an actuary firm gives us the ability to expand our services and knowledge regarding defined benefit plans to our clients.

412(i)
This defined benefit pension plan is funded by a combination of life insurance and annuities, or solely by annuities. Unlike a traditional defined benefit plan, 412(i) plans are exempt from minimum funding requirements. As a small business owner, one advantage to this type of plan is that the contributions are generally 100% tax-deductible.  

Form 5500
This annual return should be filed annually for plans covered by the Employee Retirement Income Security Act of 1974 (ERISA). Summit's professional staff has the ability to generate and electronically file the Form 5500 which eliminates the possibility of late fees imposed by the Department of Labor.  

403(b)
This type of plan may only be established by a public school, college or university, church, public hospital or an organization defined by the government. Participants may defer up to the government limit with special catch-up contributions for those over age 50. 403(b) plans operate similar to a 401(k) plan.  

457
Only selected governmental organizations such as charitable, religious and educational organizations, private hospitals, labor unions, etc. can establish a 457 plan. Under this plan, participants may defer up to the government limit, but may also defer, in addition, the maximum amount under a 401(k), 403(b), SAR-SEP plan or SIMPLE IRA.  

Money Purchase
These plans are slightly different from other defined benefit plans because the plan states a required contribution percentage for employers to contribute to each participant account.  

Cafeteria Plan (section 125 plan)
A cafeteria plan offers employees qualified benefits such as healthcare, vision, dental care, disability and others that are nontaxable. In order to receive these benefits, the employees agree to defer from their paycheck pre-tax to pay for the qualified benefits.

Tax Analysis
All plan proposals for prospective clients are accompanied by a tax analysis.  These are designed to show the true value of a qualified retirement plan for a plan sponsor, and they illustrate the CPA background and knowledge base supporting our company.  With a tax analysis, it is easy to identify the most efficient plan design while meeting the plan sponsor’s financial goals and capabilities.