WHO WE ARE

Premier Pension Solutions is a Texas based company that designs, sets up and administers 401(k) plans, profit sharing plans, money purchase plans, cafeteria plans, ESOPs and other defined benefit plans.

At Premier Pension Solutions we work with employee benefit coordinators to offer comprehensive consultation, individually designed plans and third party administrative services tailored to meet the client’s specific needs. We make it our business to place the client at the center of our relationship by focusing our determination, work ethic and professional knowledge to create a solid foundation of trust and unmatched service.

SERVICES

There are many exciting ways to design a retirement plan today. With the right combination of features, plans can be designed to provide a great benefit to employees, while keeping employer cost requirements to a minimum.

Retirement

Defined Contribution,
401(k),
Employer Match/Profit Sharing,
Safe Harbor,
Plan Documentation/Consulting,
Testing,
Government Forms 1099/5500/8955

Cafeteria

FSA,
HRA,
Plan Documentation (including Premium Only Plans),
Government Forms 5500/720

Consolidated

Single Point Billing,
Collection/Reconciliation/
Remittance

SERVICES

There are many exciting ways to design a retirement plan today. With the right combination of features, plans can be designed to provide a great benefit to employees, while keeping employer cost requirements to a minimum.

Retirement

Defined Contribution,
401(k),
Employer Match/Profit Sharing,
Safe Harbor,
Plan Documentation/Consulting,
Testing,
Government Forms 1099/5500/8955

Cafeteria

FSA,
HRA,
Plan Documentation (including Premium Only Plans),
Government Forms 5500/720

Consolidated

Single Point Billing,
Collection/Reconciliation/
Remittance

Retirement

Defined Contribution,
401(k),
Employer Match/Profit Sharing,
Safe Harbor,
Plan Documentation/Consulting,
Testing,
Government Forms 1099/5500/8955

Cafeteria

FSA,
HRA,
Plan Documentation (including Premium Only Plans),
Government Forms 5500/720

Consolidated

Single Point Billing,
Collection/Reconciliation/
Remittance

PLANS

At Premier Pension Solutions we offer a variety of plans to suit every need. We are with you from custom design, to plan setup, and throughout the administration process.

PLANS

At Premier Pension Solutions we offer a variety of plans to suit every need. We are with you from custom design, to plan setup, and throughout the administration process.

FINANCIAL CALCULATORS

We provide several easy-to-use calculators for quick access to information. These tools help you to know if your retirement plan is on track, how much you need in order to retire and much more.

WHAT OUR CLIENTS ARE SAYING

WHAT OUR CLIENTS ARE SAYING

WHAT OUR CLIENTS ARE SAYING

FREQUENTLY ASKED QUESTIONS

Most plans allow you to contribute a percentage of your pay, often between 1-20%. The maximum pre-tax contribution dollar amount is set by law and adjusted for inflation annually. The 2005 pre-tax contribution limit is $14,000. If you are age 50 or older you may also make an additional catch-up contribution of $4,000 per year. Some plans may offer you the option to contribute on an after-tax basis that is not included in the $14,000 limit. Note that plans may restrict employee contributions to an amount less than $14,000, and may also choose not to permit catch-up contributions.

The difference between the two types of contributions is when you are taxed. Pre-tax contributions and earnings are taxed only when you withdraw it. Since the money that would normally be paid in taxes goes directly into the plan, pre-tax contributions can accumulate quickly. However, if you need to withdraw money prior to age 59 you may incur a 10% withdrawal penalty, in addition to owing current income taxes. After-tax contributions are taxed before they are put into the plan. Although you won’t owe taxes on your contributions when you take a withdrawal, you will be taxed on the earnings and may be subject to an early withdrawal penalty on the interest earned if you do so before age 59.

Any savings is better than nothing and the sooner you get started, the better!! You should maximize your company’s match. For example, if your company matches 50 cents on the dollar up to 6%, you should contribute at least 6%. Simply defer as much as you can afford to budget and take full advantage of the tax deferral.

Some plans offer loans allowing you to borrow money from your 401(k) account, but you have to pay yourself back with interest. If you fail to pay back the loan it is treated as a withdrawal and the outstanding loan balance will be subject to current income taxes as well as a 10% early withdraw penalty. If your plan doesn’t offer loans, you may be able to qualify for a severe financial hardship withdrawal if no other resources are available to you. According to the IRS a hardship withdrawal includes the following:

  • down payment of primary residence
  • college tuition for you or your dependents
  • un-reimbursed medical expenses
  • prevent eviction or foreclosure from your home

Some companies are more lenient than others. Because of the complexity surrounding this issue and varying plan designs, you need to reference your plan document or ask your Human Resources representative for further information regarding plan withdrawals.

There are several different methods used to determine the amount your company may contribute to the plan. Some of the more common employee matches include:

  • fixed percentage – company contributes 25% up to 6% of participant deferrals
  • guaranteed percentage – company contributes a pre-determined percentage of participants’ pay
  • discretionary percentage – company contributes a percentage of participants’ pay generally based on company profits and subject to change year to year

Most plans allow you to stop contributing at any time though employers are not required by law to do so. Some plans may require specific percentage contribution for a full plan year so be sure to check your plan rules.

Your distribution options are the same whether you voluntarily leave or are terminated. If your account balance is more than $5,000.00, you can leave your money in the plan. If you want to take your money with you, your vested account balance can be rolled into another 401(k) plan with your employer or put into an IRA to avoid early withdrawal penalties.

There is no quick, general answer. There are four factors that affect the timing of your distribution:

  1. The plan itself may provide a time frame which should be documented in your plan documentation or summary plan description. In some rare cases, distributions are not made until the participant has reached retirement age, usually defined as age 65, even if the participant terminated employment much earlier.
  2. Your distribution cannot be processed until after the next valuation date when the plan determines the account balances of participants. Companies can determine account balances daily, monthly, quarterly, semiannually or even annually.
  3. How your money is invested can affect how long it will take for you to get your distribution. While most investments can be liquidated quickly, a few, such as some real estate investments, may take longer.
  4. Processing your paperwork after the valuation date can take a few days or a few weeks depending on how your plan is managed.

It is important for you to know that your company wants you to have your money just as soon as you do. The company is responsible for and must pay fees on your account balance for as long as your money remains in the plan.

Your employer must provide you with a Summary Plan Description and an annual statement of your account information. You have a legal right to ask the plan administrator for a copy of the plan’s latest Form 5500 or Form 5500-C/R, the summary plan description, the plan document, the trust agreement setting up the plan, if separate from the plan, and any collective bargaining contract, if appropriate, and any other instrument under which the plan was established or is operated. In addition, you will often be provided a prospectus for every fund offered in the plan, but this is not legally required. If your company’s stock is offered in the plan you are required to receive a prospectus on the company stock fund.

Government regulations require that participant contributions to a 401(k) be deposited to the plan on the earliest date that they can be reasonably segregated from the employers general assets, but in no event may they be deposited later than the 15th business day of the month following the month in which the participant contributions are deducted from their pay. Please note that your employer cannot wait until the 15th business day of the month following the month in which your contribution was deducted just for the convenience of doing so. If they can deposit the funds sooner, they must do so.

Yes, this can be done and is referred to as a trustee-to-trustee transfer. You need to request the distribution forms from your former employer. Make sure you open your new IRA before the transfer so that you can provide the account information on the required forms. There are no penalties with a trustee to trustee transfer, but if you allow your former employer to send the funds directly to you and not to your new IRA, they will be required to deduct and remit 20% of the total to the IRS.

Law allows hardship withdrawals but your employer is not required to provide this option in your plan. The cost of administering such a program can be prohibitive for many small companies. Your summary plan description (SPD) will state whether or not your employer allows withdrawals in your plan. The IRS code that governs 401(k) plans provides for hardship withdrawals only if: (1) the withdrawal is due to an immediate and heavy financial need; (2) the withdrawal must be necessary to satisfy that need (i.e. you have no other funds or way to meet the need); (3) the withdrawal must not exceed the amount needed by you; (4) you must have first obtained all distribution or nontaxable loans available under the 401k plan; and (5) you can’t contribute to the 401(k) plan for 6 months following the withdrawal. The IRS considers the following four items as acceptable reasons for a hardship withdrawal:

  1. Un-reimbursed medical expenses for you, your spouse, or dependents.
  2. Purchase of an employees principal residence.
  3. Payment of college tuition and related educational costs such as room and board for the next 12 months for you, your spouse, dependents, or children who are no longer dependents.
  4. Payments necessary to prevent eviction of you from your home, or foreclosure on the mortgage of your principal residence.

Hardship withdrawals are subject to income tax and, if you are not at least 59 years of age, the 10% withdrawal penalty. You do not have to pay the withdrawal amount back.

The rules governing 401(k) plans allow plans to provide loans, but do not mandate that an employer make it a plan feature. Your summary plan description (SPD) will state whether or not your employer allows loans in your plan. Most of the time loans are only allowed for the following reasons: (1) to pay education expenses for yourself, spouse, or child; (2) to prevent eviction from your home; (3) to pay un-reimbursed medical expenses; or (4) to buy a first-time residence. You must pay the loan back within five years, although this can be extended for the first-time home purchase. Usually you are allowed to borrow up to 50% of your vested account balance to a maximum of $50,000 (set by law). Because of the cost, many plans will also set a minimum amount and restrict the number of loans you can have outstanding at any one time. Loan payments will generally be deducted from your payroll checks and, if married, you may need your spouse to consent to the loan. Funds obtained from a loan are not subject to income tax or the 10% early withdrawal penalty. If you should terminate your employment, often any unpaid loan will be distributed to you. This distribution will be subject to income tax and, if you are not at least 591⁄2 years of age, the 10% withdrawal penalty.

ABOUT US

We place the client at the center of our relationship by focusing our determination, work ethic and professional knowledge to create a solid foundation of trust and unmatched service.

ABOUT US

We place the client at the center of our relationship by focusing our determination, work ethic and professional knowledge to create a solid foundation of trust and unmatched service.