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dagenais

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  1. I'm trying to determine a matching contribution formula and limit for my 501©(3) organization's retirement plan. When I called the IRS they told me about the Safe Harbor rule and mentioned that matching 100% of contributions up to 6% of salary is at the upper limits of what most companies do. If that's the case, how could anyone every reach the $40,000 annual limit? If I contribute $13,000 as an employee and the employer can only match 6%, I'd have to be making $450,000 in order for that 6% limit to hit $27,000 and bring the total to $40,000. Am I missing something? I'm interested in letting employees contribute as much as they want up to $13,000 and then having the employer match that 100%. Do I need to have a limit on matching based on % of compensation? Can that maximum be 10%? 15%? 20%? We only have 3 employees and we'd all like to save as much as we can. Since matching also reduces FICA for the employer, I'd like as high a limit as possible. Thanks for your feedback.
  2. Hi, I work for a small 501©(3) nonprofit and set up a 403(b) account with Vanguard earlier this year. I'm the only participant and will probably continue to be for the foreseeable future. I set up the plan as salary deferral only and it's therefore non-ERISA. For next year, I'd like to receive employer contributions as well, but Vanguard says I need a plan document if I want to do this. They don't write plan documents and couldn't recommend anyone who does. Someone from The American Pension Company gave me a quote for $1500 plus $1000 per year to write and maintain the plan document. That seems ridiculously high and I'm thinking about writing it myself. Does anyone know where I can get detailed information on what needs to be in that plan document? Any feedback would be appreciated. Thanks.
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