Davis bacon money purchase plan
and nonDavisBacon wages within the same year A separate plan can be established just for the DavisBacon contributions, but that is not required Alternatively, a plan may provide within it a special allocation or contribution formula that credits an employee with dollars based on his or her DavisBaconAn introduction to DavisBacon prevailing wage retirement plans Plans can be established as either a base profit sharing only plan or a money purchase plan. They may also be paired with a 401(k) provision (including a safe harbor feature). davis bacon money purchase plan
Mar 15, 2001 Effective 3101, the employer is also sponsoring a money purchase plan to cover a prevailing wage contract (davisbacon) for their hourly employees. The money purchase plan has a 15 contribution. The Employer now wants to amend the 401(k) to exclude the hourly employees, who are the ones covered by the prevailing wage contract, since the hourly employees participation rates have
Prevailing Wage (DavisBacon) Plans. Geared towards nonunion companies required to pay a prevailing wage for employees working on government projects. May be able to sponsor both a 401(k) and profit sharing plan. Feb 08, 1999 It is my understanding that this is generally true for a defined benefit or money purchase pension plan. However, according to a knowledgeable DOL person I spoke with a couple of years ago, it is NOT necessary to fully vest profit sharing contributions in order to receive full credit for such under Davis Bacon.davis bacon money purchase plan DavisBacon Plan A plan for workers on federal and state construction contracts worth 2, 000 or more and are paid the prevailing wage, which includes a specified hourly fringe benefit amount. This plan allows the employer savings in payroll taxes by contributing all, or part of the fringe benefit portion of the required hourly rate into a qualified retirement plan.