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What type of plan is the Radish Plan?
It's a 401(a) qualified retirement plan that is totally employer funded. Since it covers only non highly compensated employees (NHCEs), it can be designed however the employer wants, including which employees to cover and how they get contributions.
Must the IRS approve the plan?
An IRS approved prototype or a custom designed plan document must be adopted by each employer. The Wagner Law Group, one of the country’s leading ERISA firms, has prepared a simplified prototype. They will also prepare a customized document if you ...
How do employers save on payroll taxes?
Since these are qualified employer contributions to a retirement plan, they are exempt from FICA, unemployment, and workers' compensation taxes. This saves employers approximately 7.65% plus unemployment and workers' comp rates.
Must the IRS approve the plan?
An IRS approved prototype or a custom designed plan document must be adopted by each employer. The Wagner Law Group, one of the country’s leading ERISA firms, has prepared a simplified prototype. They will also prepare a customized document if you ...
Can employees access their money?
Yes. The money is more accessible than traditional 401(k) hardship withdrawals. Access is determined by employer‚Äëset criteria, and the plan is designed for employees to be able to tap into it for things like car repairs or unpaid medical expenses.