Retirement Plans Tab

The Retirement Plans tab is where information about the employers' retirement plans are configured.

TRAK allows for up to 3 different retirement plans. They are:

1.	The primary retirement plan is the plan an agent is illustrating to a client.

2.	The secondary retirement plan is an alternative retirement plan an agent is illustrating to a client. For example, if the primary plan is a 403(b) plan, the secondary may be a 457 plan.

3.	The third retirement plan would be an employer sponsored retirement plan (such as a state or other defined benefit retirement plan) with which the agent is not involved.

EmployerRetirementPlans

Hint:

Configuring the Visible Fields tab first may simplify the the input by reducing the number of inputs that must be configured.

The input data is discussed below:

Primary and Secondary Plans

There are two employer plans an advisor may work with that may be configured, the second one being optional (configured in the Visible Fields tab). Each prompt is discussed below:

Qualified Plan Type

Select the type of qualified plan. To choose a custom retirement plan (which allows for more complex defined contributions plans), select Custom Plan from the drop down list. Then select the plan from the next prompt. (See the Custom Retirement Plan prompt for more information on custom plans.)

Custom Retirement Plan

Custom Retirement Plans are configured in Setup/Custom Retirement Plans, and may be preferred for several reasons:

1.	They allow for more complex employer contributions (tiered, conditional contributions, profit sharing) than the employer file provides.

2.	They are selectable in the Quick Gap and Gap-Analysis calculators.

3.	They only need to be configured once when used with different employer or client files.

Employee Contributions Entered As

Enter the method by which the employee's contributions are made: Percent of Paycheck or Dollar Value. This will control the method for how the contribution is entered in the Paycheck calculator.

Note:

Normally, 401(k) plans would use the Percent of Paycheck method and 403(b)/TSA plans would use Dollar Value.

Employer Matching

Matching (%)

Enter the percent that the employer matches of the employee's contribution.

Maximum Percent Match

Enter the maximum percent of the employee's paycheck from which the employer's matching is calculated.

Maximum Dollar

Enter the maximum dollar per paycheck that the employer will contribute.

Employer Contributions (regardless of employee's contributions)

Dollar Contribution

Enter the per paycheck dollar contribution made by the employer.

Percent Contribution

Enter the percent of the employee contribution that the employer contributes to the retirement plan.

Employer Sponsored (Pre-defined) Retirement Plan

This qualified plan would be an employer sponsored retirement plan of which the advisor is not an active participant by making recommendations to the client (such as with an employer sponsored defined benefit plan).

Note: If the employer does not have an employer sponsored retirement plan, uncheck the Employer Sponsored (Pre-defined) Retirement Plan checkbox on the Visible Fields tab.

Contributions Based On

Select the method that the employee contributions are based on. The options are:

•	% of Paycheck

•	Specific Dollar

•	$ then Percent

•	Retirement Plan

•

None

Retirement Plan

If Retirement Plan is selected in the prior prompt, select the retirement plan to use for the contributions. If the plan makes contributions as a percent of pay, the value will be displayed here and in the Paycheck Calculator; but it will not be available to edit.

Note:

The pre-defined retirement plans included with TRAK are usually up to date. Invariably, however, there is a lag between the occasional changes made in a plan and TRAK's being updated. In this rare instance, if the employee makes contributions as a percent of their paycheck, you may want to select % of Paycheck in place of using the retirement plan.

If the retirement plan you are working with is not listed, and you would like it added, contact Trust Builders, Inc.at support@TBInc.com

Dollar Contribution

If the employee's contributions are a specific dollar value, enter the value here. It will be used as a default, but may be edited in the Paycheck Calculator.

Percent Contribution

If the employee's contributions are a percent of pay, enter the percent value here. It will be used as a default, but may be edited in the Paycheck Calculator.