A1.  NRPTC is a membership organization dedicated to educate individuals, small business owners and their tax or financial advisors about the many latent advantages of tax-favored savings plans.

A2.  Any individual or business seeking an information resource regarding IRAs, defined contributions plans for small businesses, and tax-favored education savings programs.

A3.  Each member has toll-free telephone access to the well-trained Member Services staff for answers to general questions related to IRAs and the small business plan documents available through NRPTC.

A4.  Plans for individuals –

 

            a.  Traditional IRAs

            b.  Roth IRAs

            c.  Education Savings Accounts

Plans for small businesses –

 

1.  SEP

2. SARSEP (Only for employers with plans since 1996)

3. SIMPLE IRA (only through member institution)

4. Profit Sharing and Money Purchase

            a. Simplified

            b. Standard

            c. Flexible

            d. Non-standardized

5. 401(k)/401(m) Plans

            a. Owner Only (the “Little-K”)

            b. Standard

            c. Non-Standardized

            d. Safe-Harbor (the “Safety-K”)

 

Special Plans (involves supplemental annual cost)

 

§125 Flexible Benefit Plans

            a. Full Flex Benefit Plan

            b. Premium Conversion Plan

A6.  No.

        In the case of:

·       IRAs- NRPTC’s IRA documents are only available through institutions for which NRPTC provides prototypes.  Individuals interested in having their IRAs hold non-traditional investments, such as mortgages or real estate should contact NRPTC Member Services.

SEPs- The employer’s SEP program is comprised of two documents: The SEP plans; and each participant’s SEP IRA.  The SEP plan is a prototype sponsored by NRPTC that is adopted by the employer.  SEPs have no trustee.  The employer must make contributions into the individual SEP IRAs of the participant.  These may be maintained at any financial organization of the employer’s choice that offers SEP IRAs, even if it normally uses its own SEP prototype rather than the NRPTC sponsored plan.  Employers that have not chosen a SEP IRA trustee or custodian can contact NRPTC Member Services for possible choices.

 

·       Small Business profit sharing and money purchase plans – Although these plans are required to have a trust or custodial account, unlike IRAs the law does not require it to be an institutional trustee.  The NRPTC document permits the employer to designate any eligible trustee or custodian of its choice.  Most small business owners designate themselves as the plan’s trustee.

A7.  No.  The SEP plans require a minimal amount of administration, which can probably be handled by the business of its accountant.

 

The administration required of qualified plans depends on the plans type and size.

 

·       Plans with employees involves more administrative functions than owner-only plans.

·       Money purchase plans generally involve more administration than profit sharing plans.

·       401(k) and 401(m) plans require more administration than plans without salary reduction (whether pre-tax or after-tax).

·       Non-standardized plans involve more administration than standardized plans.

Under the NRPTC prototypes the employer may either administer the plan itself or engage the services of a professional third party administrator.

NRPTC does not perform any plan administration services but can provide the names of available firms for those without a present relationship.