The Boost: When determining how much owners and top staff can defer into their retirement plans, prevailing wage contributions made for field staff can be treated as if the employee chose to defer those dollars.

The reason this is so important is that if these contributions are not made, owners and key employees would not be able to participate in the retirement plan at all, or participation would be extremely limited due to strict IRS rules. Conventional plans and administrators rarely use this simple yet powerful feature.

Here’s an example of a plan without the “boost:”