Plan Design and Consulting

With Fringe Benefit Group, we don’t try to make your business fit our plan – we tailor The Contractors Plan to fit your business. We use our years of experience to ensure you get the most from your plan with our flexible, highly specialized design capabilities.

Already have a 401(k) plan? No problem. We’ll set up a plan specifically for your prevailing wage contributions, and they can be tested together at year-end for compliance. If the amount of prevailing wage work your company does varies widely from year to year, we can adjust your plan to suit your needs.

Retirement Plan Options:

Basic Prevailing Wage Retirement Plan – These plans contain only prevailing wage contributions and do not allow for employee elective deferrals.
401(k) – By counting prevailing wage contributions as elective deferrals, owners and key employees can increase their own contributions.
Roth 401(k) – Contributions are taxed now, and can be withdrawn tax-free at retirement.
Profit Sharing – Prevailing wage contributions can be counted toward profit sharing contributions for employees, drastically reducing costs.
New Comparability – In general, New Comparability allows companies to designate higher employer contributions to select classes of employees, which enables owners and HCEs to contribute the maximum allowed under law to their own retirement accounts.

We have plan design experts in-house who design your benefit plan to maximize its potential for both owners and employees. You provide quality benefits for your employees, and increase your own ability to save for retirement at the same time.

Our unparalleled expertise in prevailing wage plans means you have the peace of mind that comes from knowing The Contractors Plan is always working for you. We can easily stop plan contributions when your prevailing wage job ends, then start them up again when the next job begins.

Using Prevailing Wage Contributions to Benefit Owners and Key Employees

Most traditional retirement plan providers don’t understand how to use prevailing wage contributions to the advantage of company owners and other Highly Compensated Employees (HCEs). At Fringe Benefit Group, we analyze your company and your prevailing wage contributions to ensure you’re getting the most from your plan.

We can reduce your profit sharing costs while increasing the amount of profit sharing you can allocate to yourself and other key employees. Our goal is to ensure you’re receiving all the benefits you’re entitled to under the law. Here are some examples of how we make this happen.

Contributions made to satisfy prevailing wage obligations can benefit owners in two ways:

To increase the amount company owners, family members, or top-paid employees can voluntarily defer into the plan.
To offset the amount of any profit sharing contribution, on a dollar-for-dollar basis, a prevailing age worker would otherwise receive.

We generally refer to Option #1 as “the boost” and Option #2 as “the offset.” Click the links for examples of how these concepts work.