While establishing a 401(k) plan is relatively straightforward, it involves significant responsibilities. Our team ensures that your plan meets all federal requirements, including:

• A properly executed and approved written plan
• A trust for the plan’s assets
• A recording system for plan transactions
• Accurate documentation and distribution of plan information to employees

Our compensation planning team brings decades of experience in developing and implementing ERISA-compliant 401(k) plans. We help manage fiduciary responsibilities, including annual audits once the number of eligible participants exceeds 100, ensuring compliance with IRS and Department of Labor requirements.

These plans offer various methods for funding retirement savings and come in two main types:

• Defined Benefit Plans: Guarantee a specific payout upon retirement, with the employer responsible for ensuring the plan is adequately funded.
• Defined Contribution Plans: The payout depends on the employee’s contributions and investment performance, with the employer making contributions but not being responsible for plan performance.

Common qualified plans include:

• SEP IRA: Simplified Employee Pension IRA, ideal for small businesses with minimal reporting requirements.
• SIMPLE IRA: Savings Incentive Match Plans for Employees, suitable for businesses with fewer than 100 employees, requiring mandatory employer contributions.
• Profit Sharing: Offers flexibility, allowing employers to contribute on their own schedule.

We assist with the setup, maintenance, and compliance of these plans, ensuring that all IRS filing requirements are met and detailed records are maintained.

Key aspects of executive compensation planning include:

• Alignment with Company Philosophy and Culture: Compensation packages should reflect the company’s values and make executives personally invested in the company’s success. This can be achieved through cash, stock options, or performance-based bonuses.
• Pay for Performance: Effective compensation is closely tied to organizational performance. We help establish metrics to measure success and align compensation with company performance.
• Benchmarking: To attract and retain talent, it’s essential to understand industry standards. We analyze compensation practices of similar organizations to ensure competitiveness.
• Severance and Retention Agreements: Our team assists in crafting agreements that detail executive duties, compensation, and terms of severance, ensuring clear documentation and protection for both the organization and the executive.

Smolin’s experts work closely with your senior leadership and external consultants to develop compensation packages that meet organizational needs while offering competitive benefits.