Retirement Planning Resources

What Our Clients Are Saying

Whether it's cost control or dealing with regulators, Anna Hunter fiercely defends the best interests of her client. My corporate retirement plan was recently selected for a random, in-depth audit by the Department of Labor. What could have been a nightmare was a "piece of cake" almost totally as a result of Anna's management of our plans. She's always available and responsive when you need her. But, when the going gets rough, she's the one you'll want in there beside you.

Joseph F. O'Neil, D.M.D.
President
O'Neil & Associates




PBMares gives great advice on my retirement account. In addition, they are a great resource for the investment firm to get better advice for my retirement plan.

Dr. Harvey Woodruff

PBMares > Services > Third Party Administration > Retirement Planning Resources

Retirement Planning Resources



Frequently Asked Questions

  1. Do I need a Fidelity Bond?
    Yes, the IRS required that all fiduciaries be bonded for 10% of the assets up to $500,000.

  2. When is the Form 5500 due?
    Seven months after the close of the plan year, with the ability for one extension for 2 1/2 months.

  3. Who must file a Form 945?
    Only plans that withheld taxes on distributions.

  4. Is there state withholding on pension plan distributions?
    Yes. Virginia and North Carolina have a mandatory 4% tax withholding on all lump sum distributions paid directly to the participant.

  5. When can a participant elect to stop making 401(k) deferrals?
    Any time.

  6. Can a participant in a cafeteria plan change his/her elections during the plan year?
    Not unless it qualifies as a change in family status.

Benefit Limits

LIMIT

2014

2013

401(k)

Lesser of $17,500 or 100% of pay

Lesser of $17,500 or up to 100% of pay

Defined Contribution Plan (e.g. Profit Sharing Plan)

$52,000

$51,000

Social Security Wage Base

$117,000

$113,700

Compensation

$260,000

$255,000

SIMPLE

Lesser of $12,000 or 100% of pay

Lesser of $12,000 or 100% of pay

Catch-up 401(k)

$5,500

$5,500

Catch-up SIMPLE

$2,500

$2,500

Plan Comparison

PLAN SPECIFICATIONS

401(k)

SIMPLE-IRA

Dollar Limit

$17,500 Maximum

$12,000 Maximum

Vesting on Company Contributions

Yes

100% immediate vesting

Employer Funding

Discretionary

Mandatory

Ongoing Administration

Complex

Minimal

Plan Design

Flexible

Restricted

Plan Document

Legal Document

Form 5305 – SIMPLE

Plan Reporting to Department of Labor and IRS

Form 5500

None

Obligatory Employer Contribution

No

Yes

Employer Eligibility

No Restrictions

Less than 100 employees

Fiduciary Responsibility

Regular rules of 404(c)

Only for one year after the employee establishes an account

PLAN

CONTRIBUTIONS

FUNDING

Defined Benefit

Employer Only

Required

Profit Sharing

Employer Only

Discretionary

ESOP

Employer Only

Discretionary

401(k)

Employee Pre-Tax

Discretionary

Matching

Employer Only

Discretionary

SIMPLE

Employee Pre-Tax and Employer

Required