Alliance Benefit Group of Michigan

30100 Telegraph Road, Suite 170, Bingham Farms, Michigan 48025 | Ph: 248-540-5300 | Fax: 248-540-5318

New Comparability Plan

A new comparability plan is a defined contribution plan which is structured to favor older, long-term employees who are key to the employer’s business by “cross testing” the contributions deposited each year on the basis of benefits that will ultimately be provided. New comparability allocations may be utilized in any 401(k), profit sharing or money purchase plan.

Allocation groups may be defined by job classification, ownership amounts, divisions or another other objective business criteria.

This plan design is attractive to the employer that wishes to maximize key employees while minimizing overall costs.

Alliance Benefit Group, its subsidiaries, and all employees thereof, are not engaged in the practice of rendering legal services, accounting or other professional advice. Although care has been taken to provide accurate guidance, the preparer of this communication disclaims any implied or actual warranties as to the accuracy of any material herein and all liability with respect thereto.

IRS CIRCULAR 230 DISCLOSURE: As stated above, Alliance Benefit Group does not provide tax advice. To the extent this communication (including attachments), mentions or discusses any tax matter, it is not intended or written to be used, and cannot be used by the recipient or any other person, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party the matter addressed herein. Any taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor.