Enrolled agents (EAs) are America’s Tax Experts. EAs are the only federally licensed tax preparers who also have unlimited rights to represent taxpayers before the IRS.
Enrolled Agents (EAs) are tax practitioners with technical expertise in taxation and are fully authorized to represent taxpayers before all administrative levels of Internal Revenue Service the (IRS) including audits, collections and appeals. All enrolled agents must pass an exam to use this designation and must also update their skills every year.
There are many issues that can arise between taxpayers and the IRS. If you are facing an audit, lien, or wage garnishment your future and reputation are at stake and you should take immediate action. But going it alone can be a time-consuming nightmare and sometimes result in a worse outcome. Our associates are uniquely qualified to resolve your tax problems and represent your best interests before the IRS and other tax authorities.
Both matching and non-elective employer contributions satisfy the non-discrimination requirement of the Internal Revenue Code. These arrangements are called “safe harbor” for that reason.
If the employer does not make a contribution-neither matching or non-elective-the 401(k) must pass a non-discrimination test labeled an ADP to remain qualified.
TRIPLE-STACKED MATCH AN APPROACH TO CONSIDER WHEN NEW COMPARABILITY FAILS
The Triple-Stacked Match 401(k) is a Safe Harbor because:
* An ADP Safe Harbor contribution is provided (1st match)
* The allocation of the discretionary matching formula does not exceed 4% of compensation and the match is limited to the first 6% of employee deferral (2nd match)
* Fixed Match: Participant deferrals in excess of 6% of compensation are NOT matched. The matching employer contribution is never greater than 6% of compensation.
* Thus, the 3rd match amount is algebraically calculated.
* The Triple-Stacked Matching Plan is exempt from the Top-Heavy rules since it only permits deferrals and matching contributions that meet the ADP and ACP requirements and has no profit-sharing component.
* The Triple-Stacked match is not age-related. It is totally dependent on how much the participant defers.
* Employees who make no deferrals receive zero contribution.