CRPC Test
No other qualified plan or 403(b) - ANS-Simple IRA or Simple 401(k)
Younger employees benefit from years of contributions and compounding - ANS-Profit
sharing, SEP, or Tandem Plan
Business has stable cash flow and owner willing to make annual financial commitment,
but either unwilling or unable to commit more than 25% compensation - ANS-Money
Purchase or Target Benefit Plan to provid age-weighted plan
Means to allow owner to meet his/her retirement - ANS-Defined Benefit Plan
No more than 100 employees earing $5000 or more - ANS-Simple IRA or Simple 401(k)
Desire plan that will motivate employees - ANS-Profit sharing, SEP, or Tandem Plan
Seeks maximum tax shelter - ANS-Defined Benefit Plan
Business cash flow fluctuates - ANS-Profit sharing, SEP, or Tandem Plan
Owner willing to make minimal contribution-2% or 3% of compensation - ANS-Simple
IRA or Simple 401(k)
Means to allow owner to meet his/her retirement - ANS-Defined Benefit Plan
Desire very low administrative cost - ANS-Simple IRA or Simple 401(k)
Willing to accept investment risk - ANS-Defined Benefit Plan
Easire to communicate plan to employees, and reduce administrative costs -
ANS-Money Purchase or Target Benefit Plan to provid age-weighted plan
Shift investment risk to employees - ANS-Profit sharing, SEP, or Tandem Plan
Desire to provide tax-deferred savings for employees - ANS-Simple IRA or Simple
401(k)
No other qualified plan or 403(b) - ANS-Simple IRA or Simple 401(k)
Younger employees benefit from years of contributions and compounding - ANS-Profit
sharing, SEP, or Tandem Plan
Business has stable cash flow and owner willing to make annual financial commitment,
but either unwilling or unable to commit more than 25% compensation - ANS-Money
Purchase or Target Benefit Plan to provid age-weighted plan
Means to allow owner to meet his/her retirement - ANS-Defined Benefit Plan
No more than 100 employees earing $5000 or more - ANS-Simple IRA or Simple 401(k)
Desire plan that will motivate employees - ANS-Profit sharing, SEP, or Tandem Plan
Seeks maximum tax shelter - ANS-Defined Benefit Plan
Business cash flow fluctuates - ANS-Profit sharing, SEP, or Tandem Plan
Owner willing to make minimal contribution-2% or 3% of compensation - ANS-Simple
IRA or Simple 401(k)
Means to allow owner to meet his/her retirement - ANS-Defined Benefit Plan
Desire very low administrative cost - ANS-Simple IRA or Simple 401(k)
Willing to accept investment risk - ANS-Defined Benefit Plan
Easire to communicate plan to employees, and reduce administrative costs -
ANS-Money Purchase or Target Benefit Plan to provid age-weighted plan
Shift investment risk to employees - ANS-Profit sharing, SEP, or Tandem Plan
Desire to provide tax-deferred savings for employees - ANS-Simple IRA or Simple
401(k)
