The Pension Service
TPS 3(16) Service
Payright Payroll Affiliates
Benefits Plus
TPS Group Medical
- TPS Group
- Areas Served
- Detroit, MI
- The Pension Service
- 457(b) Plans
457(b) Plans in Detroit, MI
A non-qualified, deferred compensation plan established by state and local governments and tax-exempt employers under IRC Section 501. They can be either eligible plans under IRC 457(b) or ineligible plans under IRC 457(f). The Pension Service handles only eligible 457(b) plans.
The Pension Service handles only eligible 457(b) plans.
Nonqualified Deferred Compensation For Employers in Detroit, MI What is it?
- Nonqualified Employer Retirement Savings Plan that does not meet the tax and labor law (ERISA) requirements for qualified pension plans.
- Used to provide retirement benefits to a select group of executives or key personnel or to provide supplemental benefits beyond those provided by company’s qualified plan
- 457(b) plans are for tax exempt organizations or governmental agencys
- 457(b) plans can include employee deferrals, employer match and employer non-elective contributions. Combined these contributions are subject to the annual contribution limit of $19,500 for 2021.
Advantages?
- Involves minimal IRS, ERISA and other regulatory requirements such as reporting & disclosure, fiduciary funding requirements, etc.
- More plan design flexibility than qualified plans.
- Allows coverage for a group of employees or even a single employee without any non-discrimination requirements.
- Allows Employer to provide different benefit amounts for different employees on different terms & conditions.
- Restores contributions/benefits limited by IRS restrictions in qualified retirement plans.
- Employee can defer max amount($19,500 for 2021) to 457(b) and max to 401(k)/403(b)
- This is an attractive feature for those key employees really looking to maximize their retirement savings.
Disadvantages?
- Tax exempt 457(b) plan must restrict eligibility to a select group of executives or key personnel.
- For 457(b) plans the annual deferral limit ($19,500 for 2020) includes employee deferrals, employer match and employer non-elective contributions. This could become an issue if the employer is making a significant employer contribution to the plan.
Investment of Assets
- Participants can elect how to invest the assets of the plan.(i.e. mutual funds, etc.)
Distribution Rules
457(b) Plans in Detroit, MI
- Withdrawals permitted after severance of employment and for unforseen emergencies
- Must start receiving benefits by April 1 following later of retirement or age 72
- Plan loans permitted
The Next Step
- What is the Employer’s objective with the Retirement plan?
- Whom do you want to benefit in the plan?
- What level of benefit do you wish to provide?
Related to: Third Party Administrator in Detroit, MI, TPA in Detroit, MI, Pension Plan Design Consultant in Detroit, MI, 401k Plan Assistance in Detroit, MI, Retirement Plan Design in Detroit, MI, Actuarial Consulting in Detroit, MI, 401k Plan Consultant in Detroit, MI, Third Party Benefits Administrator (TPA) in Detroit, MI, 401k TPA in Detroit, MI
Further Reading: 457(b) Plans
- Choosing A Retirement Plan For Your Small Business
- Action Doc: Aligning Plan Design with Your Goals
- SECURE Act: Making it Actionable
- CARES Act Summary-TPS Group
- How the CARES Act Applies to Your Retirement Plan
- Action Doc: Did You Know You Are a Fiduciary
- Action Doc: Financial Wellness Is Essential to Saving for Retirement
- What is an ERISA Fiduciary?
- Nonqualified Deferred Compensation Plans 457(b) & 457(f)
- Action Doc: Understanding Plan Audits
- IRC 457(b) Deferred Compensation Plans
- Non-Governmental 457(b) Deferred Compensation Plans
- Action Doc: It’s Time to Restate Your Defined Benefit Plan Document
457(b) Plans Videos
SECURE Act - Setting Every Community Up for Retirement Enhancement.
Reviews
We look forward to working with TPS Group next year
As another year ends, I want to express my sincere gratitude and appreciation to you and TPS Group for assigning us Krista Blier. Krista provides exceptional customer service and has been a major asset to me and Lynch, Traub, Keefe & Errante, P.C. She is extremely knowledgeable and always accessible. Always on top of the RMD’s, giving me an explanation on form 5500-SF to present to Mr. Keefe & keeping us updated with any account changes as well as specifics. It is a relief knowing I have full faith in Krista and can turn a blind eye to our account. I cannot tell you how many vendors/brokers I have to stay on top of and babysit to make sure our deadlines are met and to perform their job duties. Krista is a pleasure to work with and we look forward to working with her and TPS Group next year.
- Michael Panela
Highly impressed with their level of expertise and outstanding customer service.
I highly recommend TPS Group and their quality third-party administration for our 403(b) plan. During our long relationship with TPS Group, we have never failed to be impressed with their level of expertise and outstanding customer service. They keep their promises and it’s easy to work with them. Having our own rep Lauren McNabb is a plus!
- Don Senecal
"Extremely Helpful to Our Business"
Malinda deserves special recognition. She is prompt, courteous, and professional. We find her to be extremely helpful to our business.
- Angela Simino
"Wonderful To Work With"
My go to professional is Des. A wonderful person to work with. We can count on him to handle all of our needs.
- Andrea Blakeslee
"Answers All Of My Questions In A Clear Manner"
Our case administrator, Susan, has been absolutely wonderful and is a joy to work with. She is very knowledgeable, patient, answers all of my questions in a clear manner, and is professional.
- Kathy Townsend
Extremely Valuable to Myself and Our Company
Kathleen has helped me gather info and understand text so many times and is extremely valuable to myself and our company.
- Elizabeth Robison
They are a pleasure to work with and we highly recommend their services.
For many years we’ve relied on TPS Group’s extensive knowledge and industry expertise to keep us in compliance with state and federal regulations as well as changes in the law. Their attention to detail is just what we need to keep our business operations running smoothly. They are a pleasure to work with and we highly recommend their services.
- Dan Neal
Dependable, experienced, and professional
Dependable, experienced, and professional, our TPS Group recruiter was an invaluable resource, helping us locate and vet quality talent.
- Tyler R. Vunk
