Northeast Planning Services, LLC

Why Offer a Retirement Plan to Employees   | Plan Types and Limits

Founded in 1983, Northeast Planning Services, LLC is a Third Party Administration firm located in Waltham, MA. Our goal is to provide unparalleled service to our clients in the area of retirement plan compliance, design and administration. To this end, we use our knowledge to adhere to rules, regulations and protocols to safeguard the stability and operation of your retirement plan.

Your satisfaction with our service and communication allows us to focus on the current and future success of your retirement plan and assures your future will be improved due to our relationship.



Retirement Plan Design
and Administration


Years of Industry Experience

Northeast Planning Services, LLC (781) 890-5500

Why Offer A Retirement Plan?

Enable. Empower. Loyalty.

Along with the tax benefits, it enables and empowers employees to take an active role in their retirement security, offset cost of living increases, and provide alternative options in addition to social security.

Retirement Plan Types & Limits

Traditional 401(K)s

A traditional 401k Plan allows the employee to reduce their compensation by a specific percentage or dollar amount and have that amount contributed to the Plan as a salary deferral. The two types of salary deferrals are pre-tax 401(k) deferrals and after-tax Roth 401(k) deferrals. With pre-tax 401(k) deferrals, taxes are paid on the deferrals and earnings when the Plan eventually distributes the balance. With after-tax Roth 401(k) deferrals, the deferrals and, in most cases, the earnings are not taxable when the Plan distributes the balance.  Read More ->

Cash Balance Plan

A cash balance plan is a type of pension plan in which an employer credits a participant’s account with a predetermined percentage of annual compensation. The credits accumulate with a specified interest rate. The accumulated value of the credits with interest are paid out at normal retirement age. An enrolled actuary determines the level of funding required.  Read More->

Cross-Tested PS

Cross- tested refers to how a profit sharing contribution is allocated. It enables different classes of employees to receive different contributions based on a percentage of pay. Instead of factoring in only compensation earned when allocating a profit sharing contribution, it also factors in the age of a participant to pass nondiscrimination regulations. Read More->

Defined Benefit

A defined benefit pension plan provides for a benefit at normal retirement age which is determined based on a plan formula factoring in average compensation and years of service with the employer. An enrolled actuary determines the level of funding required.  Read More->

Safe Harbor 401k

A Safe Harbor 401(k) plan is a plan design where the Employer commits to making a certain type of contribution in exchange for simplified administration. It ensures that certain nondiscrimination regulations are met. There are two types of safe harbor contributions. One is a safe harbor matching contribution which matches 100% of salary deferred up to 3% of compensation plus 50% of salary deferred between 3% and 5% of compensation. The other type of safe harbor contribution is a 3% non-elective safe harbor contribution which allocates 3% of compensation to each eligible participant regardless of the salary deferral amount. Read More->

Profit Sharing

A profit sharing plan is a type of defined contribution plan that lets companies help employees save for retirement. With a profit sharing plan, contributions from the employer are discretionary. Read More->

Annual Plan Limits:

The IRS imposes certain rules and criteria per each plan type.



Northeast Planning Services, LLC
210 Bear Hill Road
Waltham, MA 02451
Phone: (781) 890-5500