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New Comparability Plan - NY

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1) new comparability plans When it comes to saving for retirement, there are many choices available to help participants set aside more for their future. We’re here to help with our New Comparability plan. Here’s a plan that allows employers to maximize contributions to a targeted group. In other words, there are different benefit structures for different divisions. This option can stand alone or be used in conjunction with other plan designs. The concept behind New Comparability is to demonstrate that a specific group of employees is achieving comparable benefits to those achieved by another group by testing on the basis of benefits at retirement rather than current contributions. In order for such a plan to meet non-discrimination requirements, certain minimum contributions are required for all benefiting employees. Good Candidates Companies with owners and key employees who are older than a significant portion of their employees are good candidates for a New Comparability plan. Keep in mind, if the goal is to maximize contributions for certain groups, the employer should be willing to make flexible contributions, which may vary with demographics. Annual Contribution Limits The example on the next page, based on 2015 annual contribution limits, illustrates how New Comparability plans stack up against other profit sharing plans. It shows what percentage of profit sharing contributions can go to highly compensated versus non-highly compensated employees. It also demonstrates that with a New Comparability profit sharing plan highly compensated employees can receive the maximum benefit with less total cost to the company. Establishing Groups The structure of the groups must be clearly defined in the plan document. There can be as few as two groups (e.g., highly compensated employees and non-highly compensated employees), or many more based on classifications such as service, job title, division, age, etc. Ameritas Life Insurance Corp. of New York RP 1121 NY 12-14 For Financial Professional and Plan Sponsor Use Only

2) Comparison by Plan Type 2015 Maximum Contribution Illustration Employee Age Compensation New Comparability Integrated Profit Sharing Pro Rata Profit Sharing A 50 $265,000 $53,000 $53,000 $53,000 B 45 $265,000 $53,000 $53,000 $53,000 C 40 $40,000 $2,000 $6,740 $8,000 D 32 $35,000 $1,750 $5,897 $7,000 E 28 $28,000 $1,400 $4,718 $5,600 F 25 $20,000 $1,000 $3,370 $4,000 $633,000 $112,150 $126,725 $130,600 % to HCE 94% 83% 81% % to NHCE 6% 17% 19% Total HCE=Highly compensated employees (A&B) NHCEs=Non-highly compensated employees (C,D,E & F) The illustration above is hypothetical and is for illustration purposes only. More Information A New Comparability plan may be just the plan you’re looking for. Contact your Financial Professional for more information on your retirement plan strategies. Ameritas Life Insurance Corp. of New York Ameritas Life Insurance Corp. of New York Retirement Plans Division 1350 Broadway, Suite 2201 New York, NY 10018 800-923-2732 ameritas.com This information is provided by Ameritas®, which is a marketing name for subsidiaries of Ameritas Mutual Holding Company, including, but not limited to: Ameritas Life Insurance Corp., Ameritas Life Insurance Corp. of New York and Ameritas Investment Corp., member FINRA/SIPC. Ameritas Life Insurance Corp. is not licensed in New York. Each company is solely responsible for its own financial condition and contractual obligations. For more information about Ameritas®, visit ameritas.com. The Ameritas Retirement Advantage Series refers to a group annuity variable contract issued by Ameritas Life Insurance Corp. of New York (Form FA 64349). Ameritas® and the bison design are registered service marks of Ameritas Life Insurance Corp. Fulfilling life® is a registered service mark of affiliate Ameritas Holding Company. © 2014 Ameritas Mutual Holding Company For Financial Professional and Plan Sponsor Use Only