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Defined Benefits

How Much Is Enough


Will a Cross-Tested Plan work for me?

Cross-Tested plan designs can be very complex. For example, there could be multiple business owners or "Highly-Compensated Employees", and potentially many different employee groups. Because of the limitless possibilities, we ask that you contact us about running a Cross-Tested proposal for your specific business. This will allow us to develop the best possible plan design.

In the mean time, the following example may illustrate how Cross-Tested plans work. For purposes of this example, we have assumed a rather simple business design with only one business owner and five other employees.

The other employees in our example are as follows:

Employee Age Annual Compensation (W-2)
Jane 48 65,000
John 35 40,000
Joe 29 30,000
Jill 27 25,000
Jeri 23 20,000

Now you can create the business owner's information and we'll calculate the maximum contribution the owner can receive based on a five percent (5%) contribution to the other employees.

How old is the business owner?  
What is the business owner's Annual Earned Income (W-2 or Net Earned Income from Schedule C)? $