Third Party Retirement Plan Administrator
Serving Employers & Employees since 1980
We help hard working employees retire.
Actuaries & Associates is a Third Party Administrator (TPA) that provides a wide array of services to employers who sponsor retirement plans for their employees. We service qualified retirement plans, as well as nonqualified plans, from the most basic to the most complex. With multiple locations in Texas, we can offer in-person support to those clients who prefer local service providers. However, we are very experienced in servicing clients on a national level. In comparison to nationally based TPA’s, our fees are extremely competitive, making our firm an ideal choice for employers who must prioritize cost when selecting a TPA. Please review our services, then contact us to partner with a firm that shares your objective – a better retirement plan.
Family Owned and Operated for Over
Average Employee Tenure Rate is Over 15 Years
According to the Bureau of Labor Statistics, the average tenure rate for private sector jobs is 3.8 years
Locations in Amarillo, El Paso, and Houston
As an employer, are there tax advantages to establishing a retirement plan?
Yes, employer contributions are deductible from the employer’s income; employee contributions are not taxed until distributed to the employee, and money in the plan grows tax-free.
There is a tax credit that small employers can claim for part of the ordinary and necessary costs of starting certain types of plans. The credit equals 50 percent of the cost to set up and administer the plan, up to a maximum of $500 per year for each of the first 3 years of the plan.
What is a Qualified Plan?
A Qualified Plan is designed by the government. The most common plans today are 401K. These plans are eligible for certain tax benefits. Employers get a tax break for contributions made for eligible employees. Employees may reduce their current income tax liability by reducing taxable income. These plans are a good way to attract and retain good employees. If you would like to explore how a qualified plan could benefit you and your employees feel free to contact us in our Amarillo office.
How does an Employer establish a qualified plan?
When you contact Actuaries and Associates, we will walk you through the entire process.
We will manage the administrative duties once we design the plan document (the written rules for operating the plan) that is suited to your companies’ needs.
Together, if you need assistance, we will work with you to select an Investment Advisor to recommend funds, monitor the fund’s performance and advise the participants.
You and your investment advisor will work to select an Investment Company to hold the plan’s assets.
The Investment Company will notify the employees of their investment options and then assist them with the enrollment in the plan.
Once the plan is enrolled, then Actuaries and Associates will take care of all the administrative duties of the plan to keep the plan in compliance with the Department of Labor and the Internal Revenue Service.
What are the most common types of plans an employer can establish?
Profit Sharing Plan
This plan type consists of employer contributions only. Contributions to a profit-sharing plan are discretionary, meaning there is no set amount the employer must make. Contributions will be allocated to participants based on a formula set by the employer.
A 401(k) plan has all the features of a profit sharing plan plus the plan permits employees to make contributions from their paychecks, on a pre-tax basis. The addition of employee contributions gives the employer another option for allocating the employer’s contribution. The employer may make a “Matching” contribution, an amount based on the percentage contributed by employees. 401(k) plans are the most popular type of qualified plan.
Defined Benefit Plan
A plan that promises each participant a specified benefit at retirement. Employer contributions must be sufficient to fund the future benefit.
Cash Balance Plan
A type of defined benefit plan in which the participant’s benefit is based on an account balance that is hypothetical and determined similarly to balances in defined contribution plans.
An Employee Stock Ownership Plan is a qualified defined contribution plan that is a stock bonus plan. An ESOP must be designed to invest primarily in qualifying employer securities as defined by IRC section 4975(e)(8) and meet certain requirements of the Code and regulations. The IRS and Department of Labor share jurisdiction over some ESOP features.
SIMPLE IRA Plan
A SIMPLE IRA plan (Savings Incentive Match Plan for Employees) allows employees and employers to contribute to traditional IRAs set up for employees. It is ideally suited as a start-up plan for small employers.
A 403(b) plan is a retirement plan for certain employees of public schools, employees of certain Code §501(c)(3) tax-exempt organizations and certain ministers. A 403(b) plan allows employees to contribute to the plan. The employer may also make contributions. 403(b) plans are also called tax-sheltered annuity plans.
457(b) Governmental Plan
A plan maintained by a state or local government and any of their agencies or instrumentalities. Governmental 457(b) plans must be funded and held in trust for the exclusive benefit of participants. Employee and employer contributions are permitted.
457(b) Tax-Exempt Plan
A plan maintained by a non-governmental tax exempt entity under IRC §501, except for churches and church-controlled organizations. Participation must be limited to a select group of management or highly compensated employees. The plan must do so to avoid being subject to the funding requirements under ERISA. Code Section 457 expressly prohibits the funding of 457(b) plans maintained by tax-exempt organizations. This type of plan is also known as a “Top Hat” plan.
Nonqualified Deferred Compensation Plan (NQDC)
An NQDC plan defers compensation that workers earn in one year, but that is paid in a future year. The objective is to defer the payment of tax and/or to defer it to such time that the worker is expected to be in a lower tax bracket. NQDC plans provide executives with substantial retirement benefits that cannot be achieved in qualified plans. The most common arrangements are life insurance plans, excess-benefit plans, top-hat plans, severance plans, deferred bonuses, vested trusts, rabbi trusts, secular trusts, stock options, phantom stock, and golden parachutes.
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Whether your company has 1 employee or 1,000 employees you have local Texans ready to visit.