Qualified Savings Plans

401(k) Plans – over the years, Kost Consulting has provided service to many clients looking to improve and enhance their 401(k) plan.  Typically, we also provide cost savings to clients that are open to consider our recommendations.  It is our experience that participation levels often increase and employee contributions go up when such changes are implemented.  What changes?  Sometimes it could simply involve a modest increase in the employer match or even a tweak in the vesting schedule.  Other times, it might involve automatic enrollment, online enrollment, a loan provision or even a Safe Harbor plan.  In all instances, however, our advice and suggestions center around employee appreciation.  A better understanding of the importance of saving for retirement and a higher comfort level in making decisions regarding investment choices are key to achieving one’s retirement goals.

Profit Sharing Plans – although such plans can be stand alone, it’s quite common to include such a plan as a supplement to an existing 401(k) plan.  It provides the plan sponsor with discretion on contributions rather than the fixed match commitment found in most 401(k) plans.  A Profit Sharing feature can also supplement the employer match, giving plan sponsors more flexibility and plan participants increased savings potential.  Kost Consulting has recommended creative asset reallocation formulas, such as New Comparability and Cross Tested programs, where key management might benefit to a much greater extent depending upon company demographics.

For more information visit our Qualified Savings Plan links.