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
Witt Mares Pension Designs 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
Witt Mares Pension Designs
FREQUENTLY ASKED QUESTIONS
- Do I need a Fidelity Bond?
Yes, the IRS required that all fiduciaries be bonded for 10% of the assets up to $500,000. - 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. - Who must file a Form 945?
Only plans that withheld taxes on distributions. - 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. - When can a participant elect to stop making 401(k) deferrals?
Any time. - 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.
|
LIMIT |
2012 |
2011 |
|
401(k) |
Lesser of $17,000 or 100% of pay |
Lesser of $16,500 or 100% of pay |
|
Defined Contribution Plan (e.g. Profit Sharing Plan) |
$50,000 |
$49,000 |
|
Social Security Wage Base |
$110,100 |
$106,800 |
|
Compensation |
$250,000 |
$245,000 |
|
SIMPLE |
Lesser of $11,500 or 100% of pay |
Lesser of $11,500 or 100% of pay |
|
Catch-up 401(k) |
$5,500 |
$5,500 |
|
Catch-up SIMPLE |
$2,500 |
$2,500 |
|
PLAN SPECIFICATIONS |
401(k) |
SIMPLE-IRA |
|
Dollar Limit |
$17,000 Maximum |
$11,500 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 |