Welcome to BENCOR
Through highly knowledgeable Advisors, a personalized approach to retirement strategy and making a multitude of retirement and benefits resources available to participants, BENCOR stands as the leading designer of Special Pay and FICA Alternative Plans.
In this regard, how do I withdraw money from bencor?
To request a withdrawal, download a Distribution Request Form from www.bencorplans.com. Additional information about income taxes and rollovers is included with the form. Are my funds taxable and are there any penalties when I withdraw my funds? Income taxes are imposed for the year of withdrawal.
Secondly, how does a 401 A plan work?
A 401(a) plan is an employer-sponsored money-purchase retirement plan that allows dollar or percentage-based contributions from the employer, the employee, or both. … The employee can withdraw funds from a 401(a) plan through a rollover to a different qualified retirement plan, a lump-sum payment, or an annuity.
What is a special pay plan?
Much like the Employer Sponsored Plan, a Special Pay Plan is a type of an employer-funded, defined contribution retirement plan for full-time employees. A 403(b) or 401(a) retirement plan is designed to handle special forms of compensation in a tax-advantaged manner.
What is an OBRA plan?
The Omnibus Budget Reconciliation Act of 1990 (OBRA) allows governmental employers under certain circumstances to use a deferred compensation plan described in Section 457(b) of the Internal Revenue Code in lieu of paying and withholding Social Security/FICA taxes for employees that participate in such plans.
Is FICA a retirement plan?
FICA, the Federal Insurance Contributions Act, refers to the taxes that largely fund Social Security retirement, disability, survivors, spousal and children’s benefits. FICA taxes also provide a chunk of Medicare’s budget.
Do you pay FICA on 457 withdrawals?
A 457 plan is one of several retirement plans that employers offer to their workers, but it is less common and more complex than a 401(k) or 403(b). … You can withdraw your money from 457 before age 59½ without a 10% penalty, unlike a 401(k), but you will owe taxes on any withdrawal.
Is FICA Social Security?
FICA is a U.S. federal payroll tax. It stands for the Federal Insurance Contributions Act and is deducted from each paycheck. Your nine-digit number helps Social Security accurately record your covered wages or self- employment. As you work and pay FICA taxes, you earn credits for Social Security benefits.