Educational Opportunities Pick-up Plans
It is possible for employers to defer taxes on employees’ retirement contributions. This is known as employer pick-up. Internal Revenue Code Section 414(h)(2) allows employers to make contributions to a qualified pension plan on a tax-deferred basis. Taxes are deferred until an employee receives the contributions as a refund or as retirement benefits.
In one hour, you’ll learn the difference between the two types of pick-up plans, the requirements for a plan and how to implement a pick-up plan.