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

QACA
Basic

Safe-Harbor Matching Plan

100% match up to the first 1% of wages, 50% match on the next 5%, maximum match equals 3.5% of total wages

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

Automatic pass on most nondiscrimination tests

Yes

QACA
Enhanced

Safe Harbor Matching Plan

Must be as good as the basic formula but maximum match equals 6% of total wages

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

Automatic pass on most nondiscrimination tests

Yes

Minimum
3% Plan

Safe Harbor Non-Elective

Employer contributes at least 3% of employee compensation, regardless if they contribute

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

Automatic pass on most nondiscrimination tests

Yes

Discretionary
Plan

NON-Safe Harbor Option

Employer may contribute as little or as much as they would like within testing limits

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 can be invested in pre-tax or Roth accounts

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

Contributions can 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 contributions to the employee 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.