What type of plan?

[Guest m.n.ouellette]

Hi to all! I am a TPA and my scope of knowledge is limited to Qualified DC plans. I have several very small-employer clients who only have a plan open to allow for salary deferrals. With the re-write of the documents, I'm considering making a suggestion that they do something (??) to alleviate my annual fees along with the document fee. This is a weeding-out process for me, too, which I think is important to do every so often.

What kind(s) of retirement plan are available for these types of employers? There is one owner, but he/she doesn't defer. Well, doesn't defer enough to come close to failing ADP tests. There is actually one owner who doesn't defer at all! These plans are open to allow the few employees to be able to defer. (Mind you, their intent in the beginning, I think, was to do more ER contributions as well as owner-deferrals, too.)

Looks like the SIMPLE and SEP plans have a required ER contribution. Is there anything where an employee can put in money and have the "option" for the employer down the road?

Thanks for any input.

[Jim Chad]

It isn't legal to start a SARSEP any more? And a SIMPLE IRA requires a er contrib, at least most years.

Maybe an employer sponsored IRA?