Leveraging your benefits and freeing up your funds for what you need most.
401a Plan Advantages
What is a Special Pay Plan?
A Special Pay Plan is a 401(a), 403(b), or 457(b) retirement plan designed to handle special forms of compensation in a tax-advantaged manner for governmental and school district employees. Funded upon retirement or at separation from service, these forms of compensation typically include unused sick leave and unused vacation pay.
When it comes down to it, the three major highlights are: Preventing Unnecessary Employee Callouts, Reducing Overtime Pay, and Saving on FICA Taxes.
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Benefits On Both Sides
1
Employer Benefits
The employer saves 7.65% FICA Taxes (SS and Medicare)
Turnkey plan administration, compliance, and education
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24/7 online plan access—download plan documents, monitor account transaction and generate reports
IRS-approved plan documents
2
Employee Benefits
Contributions are pre-tax
Flexible distribution options
Permanently save SS & Medicare taxes on contributions
Contributions are 100% fully vested
Full control over distribution timing for tax planning