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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.

Benefits On Both Sides

1

Employer Benefits

The employer saves 7.65% FICA Taxes (SS and Medicare)

 

Turnkey plan administration, compliance, and education

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

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