What industries work best for this plan?
Any industry with measurable performance metrics works well. The primary focus has been trucking (safety, on‚Äëtime delivery), but it also works for healthcare (patient satisfaction, attendance), sales organizations, manufacturing, construction, and service industries.
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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.
Can this work for 1099 contractors?
Yes, we allow IRA funding for 1099 contractors, which will enable sales organizations and other contractor based businesses to participate.
Who provides the legal framework?
The Wagner Law Group has done all the legal work and provided their legal blessing. They've prepared a prototype document with an adoption agreement that's only a couple of pages long with minimal decisions to make.
What design options do we have?
There are very few rules that must be followed. As a result, the plan can be designed however you wish, and we will help you do that. We will then prepare what is needed to implement the plan.
Is there compliance testing required?
No. There's no compliance testing, no discrimination testing at the end of the year. This is a very simplified plan compared to traditional 401(k)s.