Crafting a retirement program for contractors, owners, supervisory staff and hourly workers while remaining compliant with the requirements of a bona fide benefit plan is a complex task.
Retirement solutions offered by Piedmont Group are built specifically for contractors with compliance, ease of implementation, administration, and asset maximization in mind. We specialize in prevailing wage benefit plans, and understand how to leverage prevailing wage retirement contributions to create dynamic opportunities for owners and highly compensated employees.
We analyze each contractor’s situation and design a program to maximize every fringe dollar contributed:
- Boost Plans: As the amount owners and key employees can defer into their own retirement accounts is tied to the amount non-HCEs defer, treating prevailing wage dollars contributed to a 401(k) plan as if they were elective deferrals drastically increase the amount owners and HCEs can save for retirement.
- Profit Sharing Offset Plans: Counting prevailing wage contributions to employee 401(K) plans toward profit sharing allocations significantly reduces costs.
- Safe Harbor Plans: Our Safe Harbor plans design allow employers to take advantage of both boost and offset features outlined above. Since prevailing wage contributions are immediately fully vested, they fulfill one of the major requirements for implementing a Safe Harbor plan.
- New Comparability Plan: The New Comparability plan design enables company owners to maximize contributions to their own retirement accounts by establishing two or more classes of employees. New Comparability rules allow employers to designate higher contributions to select employee groups (e.g.. owners and key employees.)
If you are a contractor that already offers a 401(k) plan, Piedmont Group can create a plan for prevailing wage contributions and test the plans together at year-end for compliance. Retirement Plan Options include:
- Basic Prevailing Wage Retirement Plan
- 401(k) Plan
- Roth 401(k) Plan
- Safe Harbor Plan
- Profit Sharing Plan
- New Comparability Plan