New Comparability Plan

A new comparability plan is a defined contribution plan which is structured to favor older, long-term employees who are key to the employer’s business by “cross testing” the contributions deposited each year on the basis of benefits that will ultimately be provided. New comparability allocations may be utilized in any 401(k), profit sharing or money purchase plan.

Allocation groups may be defined by job classification, ownership amounts, divisions or another other objective business criteria.

This plan design is attractive to the employer that wishes to maximize key employees while minimizing overall costs.