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 PenSys Class Allocation Plan |
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A
Class Allocation plan is a profit sharing plan,
which may allow for very substantial contributions for a favored and, on average,
older group of employees, (generally the owner or owners of a business),
with much lower contributions for the rank and file employees. In some
cases, annual contributions can be as high as a 100% of pay, or $49,000
each for the favored "Class" of employees, with as little as
5% of pay to the other classes of employees. The Class Allocation plan
is one of the most popular plan designs for professional and
small closely held businesses.
Advantages
- Allows smaller employers to get the maximum benefit to key employees
while controlling overall plan costs
- Employer can set up different classes of employees with different
contribution levels
- Can be incorporated with a 401(k) Plan
View the Class Allocation Plan Highlight Sheet
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