Peppermint
Plans

Peppermint
Plans

Traditional retirement plans are expensive, time consuming, and risky. Peppermint®’s Pooled Employer Plan makes offering great retirement savings options easy and affordable.

Traditional retirement plans are expensive, time consuming, and risky. Peppermint®’s Pooled Employer Plan makes offering great retirement savings options easy and affordable.

Plans
Options

Safe Harbor Option

Employer Match

Employee Investment

Compliance Testing

Optimizes Employee Retirement

Dollar for Dollar

Safe-Harbor Matching Plan

Employer matches 100% on the first 4% of deferred compensation

Pre-tax Contributions, Post-tax (Roth) contributions

Automatic Pass-Safe harbor plans automatically pass most nondiscrimination tests, such as the Actual Deferral Percentage (ADP) and Actual Contribution Percentage (ACP). This eliminates the need for annual nondiscrimination testing and the associated expenses.

Yes

Fixed 3%

Safe Harbor Matching Plan

Employers put in 3% of employee’s compensation, even if the employee does not contribute

Pre-tax Contributions, Post-tax (Roth) contributions

Automatic Pass-Safe harbor plans automatically pass most nondiscrimination tests, such as the Actual Deferral Percentage (ADP) and Actual Contribution Percentage (ACP). This eliminates the need for annual nondiscrimination testing and the associated expenses.

Yes

Discretionary Plan

NON-Safe Harbor Option

Employer discretion

Pre-tax Contributions, Post-tax (Roth) contributions

Subject to compliance testing.

Yes

What is a Pooled Employer Plan?

A PEP allows organizations to pool resources with other employers to make retirement plans less expensive and easier to manage. Peppermint manages all the administration, so you don’t have to expend your valuable resources. We also take care of the risk, audits, and reviews.

All Options Include:

Profit sharing options

Funds are invested in retirement plans before being taxed

Ability to transfer funds from prior retirement accounts

Flexible eligibility for enrollment

Automatic enrollment options

Access to borrow from retirement accounts

Ability to withdraw funds in an emergency

All options reduce an employer’s taxable income

Safe Harbor vs. Non-safe Harbor Plans

Safe Harbor

A safe harbor plan includes a mandatory employer contribution match:

  • Requires an annual employer contribution
  • Employee keeps 100% of investment if they leave the company at any time
  • Exempt from most annual compliance testing
  • Optimizes your & highly compensated employees’ personal retirement

Pros: Allows you to bypass expensive plan testing and creates the opportunity for flexibility and higher contributions to owners and highly compensated employees without the risk of testing failure

Cons: Less freedom around contribution options

Employer Directed

A non safe harbor plan that gives the employer more traditional options:

  • Employer can contribute as little or as much as they would like
  • Employer can create a vesting schedule to withhold a percentage of the employee’s earnings based on their duration of employment
  • This option requires testing

Pros: Fewer restrictions, more contribution options, employees are incentivized to stay

Cons: Requires calculations, testing, applicable fees, and may involve more risk

Use your tax credits to fund your company’s retirement program.

Use your tax credits to fund your company’s retirement program.

Setting up a PEP may give you up to $15,000+ in tax credits over 3 years. Consult your tax advisor to determine credits*