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Planar Systems, Inc. 401K Plan


Summary

Planar operates in what might be described currently as a challenged industry.  Often companies in challenging industries or ones that have run across difficulties will offer little or no benefit programs to their employees. 

Sometimes this lack of benefits is temporary or permanent.  Even though Planar is struggling with profitability, they have made a commitment to its employees to offer a program which is designed to meet the minimum “Safe Harbor” requirements by the DOL and IRS.  These safe harbor programs can reduce implementation costs and provide tax benefits to the company, but are always valuable to the retirements of its employees.


Strengths

  • Offers a safe harbor match of 100% of the first 3% of employee contributions and 50% up to 5% of employee additional contributions beyond the 3% contribution.
  • Provides long-term disability option to pay premiums with after tax dollars, so any benefits paid are tax free.

Weakness

  • Program relies on an expensive group of confusing investment choices of actively managed funds to create an employee’s retirement plan.  This mix of investments is difficult to combine into a coherent portfolio that optimizes risk and return.
  • Provides only one index fund among its investment choices.  We would encourage more indexed investments.