401(k), ERISA & Non-ERISA 403(b), Cash Balance, and Defined Benefit Plan Administration. From plan design to annual compliance work, PBS can handle all of your administration needs.

Benefits Overview

PBS helps with retirement plan design optimization, annual compliance work, new plan set-up, and day-to-day- running of the plan. We are a partner you can count on whether you’re looking for a new TPA or if you’re just jumping into the retirement plan space and are ready to set up your first retirement plan. We got you.

An employee retirement plan is an integral part of any employer’s compensation package. Whether you already have a plan and require annual administration or need assistance in establishing an appropriate plan for your employees, Professional Benefit Services, Inc. can help. It may be as simple as performing ongoing annual administration or providing the legal documents to establish a Plan.


Almost every employee benefit plan needs a legal document which describes the eligibility requirements, benefit of the plan and other conditions surrounding the benefit.

Our firm provides documents that have been prepared by the legal community and where a government review process is required the documents have been reviewed by government officials.

Our office has document checklist to facilitate this process. In addition, our staff is ready to visit with a client either via a personal visit, electronic conferencing or phone conference to assist in plan design and provisions.

Documents are typically generated within two weeks of receipt of a completed document checklist.

We have documents that will allow flexibility for our employers. Our retirement documents designs range from employee contributions only (deferral) to complex allocations involving employer contributions. Our cafeteria document designs range from Full Consumer Driven Health Care Products, Premium Only, HRA and Transportation.​

Our office is always happy to provide retirement employer applications free of charge to ensure further that the document meets the goal of the employer.

Refer to our fee schedules for the price of these services.

Safe Harbor

If you find that your plan has difficulty passing the ADP test or your plan is Top Heavy, there is an alternative way available for highly compensated individuals to defer the IRS maximum into the plan for each plan year. This alternative way to satisfy the ADP test is to qualify the plan as a “safe harbor 401(k) plan.” In order to qualify, the 401(k) plan must have Safe Harbor language in their document (or be amended to add this language for $100), satisfy a contribution requirement and a notice requirement.

Once you satisfy the requirements to qualify as a safe harbor plan, your plan will no longer be required to satisfy the ADP test and highly compensated employees can defer up to the IRS maximum each plan year (assuming this plus employer contributions doesn’t exceed the maximum of 100% of pay) regardless of how much the non-highly compensated defer.

The safe harbor contribution requirement is satisfied if the Employer makes one of the following contributions to the plan:

  • An employer 100% vested contribution of 3% of compensation to all employees eligible to participate in the plan

  • An employer 100% vested matching contribution for non-highly compensated employees of up to the first 3% of compensation contributed by the employee and 50% employer matching for employee contributions from 3% to 5% of compensation.

Effective January 1, 2002, the law provides that both the 3% of compensation safe harbor contribution and the safe harbor match described above will also satisfy the minimum 3% contribution if your plan is top heavy (though unlike the 3% top heavy contribution, the safe harbor contribution is 100% vested).

The safe harbor notice requirement is satisfied if each employee who is eligible for the plan is notified in writing of his/her rights under the plan within a reasonable period of time (30 to90 days is recommended) prior to the beginning of each plan year. This notice may be a simple one page notice indicating the plan sponsor has chosen to make a safe harbor matching contribution for the upcoming year, which is then attached to the Summary Plan Description for the Plan. Click here to get a sample notice: Safe Harbor Employee Notice.  For more information contact our office.

IRS Safe Harbor Provision – Annual Notification is Required!!

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Retirement Fees Schedule

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Retirement Takeover Checklist

Frequently Asked Questions

Q: What is a 401(k) Plan?
A: A 401(k) plan as designated by the Internal Revenue Code, allows you to make regular, tax-deferred payroll contributions from your salary into an investment plan. You pay no state or federal taxes on your deferred salary contributions or your investment earnings until such time as these dollars are distributed from the Plan.

Q: Why would I want to defer to a 401(k) Plan?
A: Here are four very good reasons:

  • Discipline. Most of us know we need to save and few of us have the discipline to save out of our spendable income. A 401(k) plan is a self-imposed, “forced” retirement plan. It gets withheld before it can be spent.

  • Tax Deferral. Money that would have gone to pay state and federal income taxes can now be working for you inside your retirement plan, growing at a compound interest rate.

  • Maximize Employer Contributions. Many 401(k) plans today have a “matching” feature, which allows employers to match dollars you put in with employer contributions. These matches are usually limited to certain amounts and are not contributed unless you defer out of your salary.

  • Need. Most people today know the trouble Social Security is in. It was always meant as a supplement. Experts say your retirement should come from three sources: 1) personal savings, 2) company pension, and 3) Social Security. If you are not planning adequately for your retirement, you may be forced into a lifestyle you have no control over.

Q: How does the Plan work?
A: You enroll to contribute to the plan with before-tax dollars. Contributions are deducted each pay period from your gross pay. (Your company may also elect to contribute to employees’ accounts by matching all or a percentage of your contributions.) You decide if you want to make contributions and how much you want to contribute. You enroll to contribute to the plan with before-tax dollars. Contributions are deducted each pay period from your gross pay. (Your company may also elect to contribute to employees’ accounts by matching all or a percentage of your contributions.) You decide if you want to make contributions and how much you want to contribute.

Q: How do I enroll?
A: You need to complete an Enrollment Form and a Beneficiary Designation Form to begin contributions to the Plan. The Enrollment Form authorizes your employer to payroll deduct the deferral amount (or percentage of salary) you want to contribute to the Plan and how you wish to invest your money. The Beneficiary Form designates who will receive your account should you die.

Q: How much money can I defer each year?
A: The maximum deferral limit a 401(k) plan participant may elect in 2014 is $17,500 for individuals under age 50 and $23,000 for individuals age 50 and over. Maximum plan contributions to a participants account is 100% of pay or $52,000. ($57,500 for those with catch-up).

Q: Can I change my deferrals?
A: You will have an opportunity to raise, lower or stop your contributions at certain times of the year. You can also make changes in how your money is invested or shift your money from one account to another.

Q: What tax advantages does the 401(k) Plan offer?
A: There are two major tax advantages to the 401(k) plan. During working years, as participants contribute to their 401(k), they can make before-tax contributions which reduces their taxable income, thus reducing the amount paid in taxes. Later, when they reach retirement age and begin to make withdrawals, they may be in a significantly lower tax bracket, resulting in additional tax savings.

Q: Is a 401(k) contribution better than a regular savings account?
A: Typically the funds you invest earn a higher rate of return than a regular savings account because the investments involve larger dollar amounts which can earn higher rates of interest.

Q: How do I select my investment options?
A: You can select to invest your money in one account or divide it by whole percentages (totaling 100%) into several account options. Please refer to separate handouts which describe your Plan’s Investment Options.

Q: How do I keep track of my investments?
A: You will receive statements showing your personal contributions, and employer contributions, if any, and the investment earnings on these contributions.

Q: Once I invest my money, can I withdraw it?
A: The 401(k) Plan allows you to withdraw your funds for the following reasons:

  • termination of employment

  • disability / death

  • retirement

  • financial hardship (if allowed by your Plan)

Q: What happens if I leave my job?
A: If you terminate employment you will receive 100% of your contributions and earnings at the specified distribution time. Employer contributions, if any, may be subject to a vesting schedule.

Q: What are the contribution limitations?
A: The Internal Revenue Service sets limits each year on the amount an individual may defer. The Internal Revenue Service also requires testing which assures a fair mix of contributions from participants at all earnings levels. In order to maintain the proper IRS-required balance, it may be necessary to limit the contributions by the higher-paid company employees by adjusting their contributions to a level that is considered appropriate by IRS. If an adjustment is necessary, the affected employees will be notified.

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