Target Clients

[ERISAAPPLE]

If anyone is willing share, what types of clients do you find to be "ideal" target clients who could benefit from a cross-tested or new comparability plan?  I will be glad to share my thoughts.  I look for smaller businesses that have a lot of income with demographics that are favorable for the testing and with owners who want to sock away some money, take advantage of the tax deduction, and mitigate the costs of benefits to their staff.  

[Tom Poje]

if the owner is at max comp 270,000, a 20% ps contrib = 54,000, the 415 limit.

the gateway minimum is 5%.

since 1.085 ^ 17 = 4.00226, then an e-bar for someone 17 younger will put someone in the rate group, because 5% * 4.00226 > 20%.

of course if you have deferrals that could reduce the owner to 13.33%, or a gateway of 4.44%

1.085 ^ 14= 3.13, so for starting points you generally need an age difference of 14 to 17 years between the HCE and NCEs.(if you are talking about ideal demographics)

keeping things rather simple in the example....

[ERISAAPPLE]

I actually follow what you are saying Tom.   I can't say I can fully comprehend, but I follow it.  I am starting to scare myself with the boredom.

[BG5150]

The ideal client is the one that pays its invoices on time....

[ratherbereading]

I actually prefer an integrated design. I have quite a few plans with older owners who hire their younger kids and then the new comp no longer works.