AGC 401k Pension Plan

The plans available can be tailored to the design and budget of your particular business.  The plan requires no billed fees to the employer for administration and no monthly fee charges to the employees.  We have engaged the services of qualified pension plan professionals to ensure that this program meets the needs of all our member companies no matter what size.

AGC Offers Members Three Plans:

• Prevailing Wage Pension Plan
• 401(k) Plan
• Qualified Profit Sharing Plan

Professionals from Financial Design Group work closely and individually with AGC members to clarify and provide information on retirement plan benefits available through the AGC. They will provide on-site meetings, educational programs for employees and ongoing service for owners and their employees. You can contact plan representative Charlie Keturakat at 509-456-6400 to set up an initial meeting, or contact Cheryl Stewart at AGC cstewart@nwagc.org or 509-535-0391 for additional information.

Give yourself a tax break and give your employees a valuable benefit.

With a pension plan you can do both…..and more. A pension plan is an important tool you can use to strengthen your business and reward the people who have helped make it a success. A pension plan creates a win-win situation for you, your employees and your business by offering:

A business tax deduction. Contributions to a pension plan are deductible as a business expense.

An important employee benefit. Employees appreciate the contribution toward their retirement security, especially when it's not reportable as income. This makes pension plans effective in helping you attract and retain competent people and reward existing employees for their loyalty and service.

A way to diversify your company's investments. Pension funds can be invested in a variety of ways to balance out your company's portfolio. Best of all, pension investments grow on a tax-deferred basis for both you and your employees.

Few business investments offer such a combination of features. And putting them to work for your company is easy. All it takes is good planning and good advice.

AGC Pension Plans currently offer 12 investment vehicles. Participants may direct the investment of their accounts on a daily basis. Investment management is provided by Principal Financial Group.

A Money Purchase Pension Plan allows employer contributions up to 25% or $30,000 per employee whichever is less.

The company makes all necessary contributions according to the plans provisions. These contributions are generally intended to satisfy (or partially satisfy) the state's prevailing wage law fringe benefit payment requirements.

How AGC's Prevailing Wage Pension Plan Can Work for You:

• Improves company's cash flow.
• Allows the company to bid more competitively on Davis-Bacon or prevailing wage projects while increasing profits.
• Allows the company to escape all payroll taxes on the fringe amount (Workers' Compensation premiums, FICA, Medicare, FUTA, SUTA, and general liability costs on the entire fringe amount).
• Attract and retain highly skilled employees by providing a tax-deferred retirement fund.
• The Plan is designed to fully comply with Department of Labor regulations and meet DOL and IRS rules.

Benefit to Employees

• Earnings accumulate tax-deferred.
• Contributions made on behalf of plan participants are not included in current taxable income.
• 100% immediate vesting.
• Quarterly and annual reports are mailed directly to participant's home address.

How Are Contributions Calculated?

The company determines how much money will be contributed to the plan based upon the prevailing wage requirements for each employee group and with respect to each job or contract.

What Is the Cost?

There are no set-up charges for this plan and no fees for rolling over any participating balances in an existing plan to this plan.

In the 401(k) plan your employees make contributions and the company may or may not choose to match part of those contributions.

The AGC 401(k) plan can be used on a "stand alone" basis or in conjunction with the current "prevailing wage" pension program.

How AGC's 401(k) Plan Can Work for You:

• Most large companies offer employees a 401(k) program, but they have been priced out of the reach of most small companies...until now.
• Wide choice of investment options covers the whole range of investment risk.
• Attract and retain better-qualified workers with a 401(k) tax deferred contribution option.

Benefit to Employees

Employees save on a before tax basis, their contributions are deducted from their paychecks before federal and state income taxes are calculated thereby reducing their taxable pay by the amount they set aside as retirement savings.

What Is the Cost?

There are no set-up charges for employer participation in this plan and no fees for rolling over any participant balances in an existing plan to this plan.

A profit sharing plan is one of the most flexible plans available because contributions to the plan may be determined annually. This flexibility makes profit sharing plans attractive to employers with fluctuating annual incomes and profits.

Benefits to Employers

Employers can use the profit sharing plan to reward employees during periods of high earnings and reduce or suspend contributions at other times.

• Contributions are tax deductible to the employer.
• Profit sharing increases employee morale and loyalty.
• Profit sharing plan contributions may be tied to a key business goal.

What is the Cost?

There are no set-up charges for employer participation in this plan and no fees for rolling over any participant balances in an existing plan to this plan.