RMI 3503 Lecture Notes - Lecture 5: Deferral, Dj Premier

• School: Temple University
• Department: Risk Management and Insurance
• Course: RMI 3503
• Professor: J.Volkman Wise

Document Summary

These plans are all ones that are considered tax-advantaged plans but don"t fall under. Each has features similar to quali ed plans and other types of plans (403(b)s are very similar to 401(k)s for example) but ultimately they each have their own set of rules. Both seps and simples are better plans for smaller employers looking to avoid the higher admin costs associated with other quali ed plans. No trust since an ira is set up for each participant. B/c of increased simpli cation there is a trade-o with plan exibility. Coverage if contributions are made in a year, contributions must be made for all employees that meet all of the following requirements: age: 21 years or older: length of employment: working for er for 3 of previous 5 years (immediately previous; but doesn"t need to be consequative, compensation: earning at least /year. 2 options: allocate contribution as % of compensation. Or: integrate with social security (see topic 8 notes)