Fred S. Shapiro, & Associates, Inc. provides consulting and administrative services for accountants, attorneys, financial advisors and their clients.


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New Plan Design

Annual Administrative Functions

Plan Revision

Plan Termination


Fred S. Shapiro & Associates, Inc. designs, installs and provides annual administrative services for tax-qualified pension and profit sharing plans. These plans are custom-tailored to the needs of the firm's clients, who are referred by accountants, attorneys and numerous financial advisors, including financial planners, life underwriters and stockbrokers.


Specializing in understanding the various technicalities of TRA'86, UCA'92, OBRA'93, GUST and EGTRRA, the most recent legislation impacting the provisions qualified retirement plans, Fred S. Shapiro & Associates, Inc. provides its clients with initial as well as updated advice in order to maintain compliance with the laws.


Prior to the design and installation of a new plan, census data reports are carefully evaluated in order to design favorable plan concepts, achieving the objectives the client wishes to accomplish. Plan proposals are created, reviewed and evaluated by the client and their combination plans, Fred S. Shapiro & Associates, Inc. carefully prepares the plan and trust for approval. All ancillary requirements such as Form 5300 series, Notice to Employees, Summary Plan Description, Minutes adopting the plan, applications for Plan and Administrator identification numbers and cover letters to the federal agencies involved are included as part of the installation package. Installation follow-up is continued through and including Internal Revenue Service Approval of the plan.


On an annual administrative basis, Fred S. Shapiro, & Associates, Inc. secures all pertinent census and plan financial data, calculates the desired or required annual contribution, prepares government forms including the Internal Revenue Service 5500 series and the required Summary Annual Report for the Department of Labor, allocates profits, losses, interest and dividends, prepares participant benefit statements, provides actuarial calculations and Schedule B certification, and discusses the direction of the plan with the client. In addition, calculations are made for beneficiaries of deceased participants as well as terminated, retired or disabled members of the plan.


On a fee basis, the firm is available to prepare any new Summary Plan Description as required by substantive plan amendments, to prepare desirable plan adjustments or amendments allowable within the scope of the Internal Revenue Code and to represent the client in an Internal Revenue Service audit of the plan.


In addition, technical seminars are provided for accountants, financial planners, investment advisors, and life underwriters on topics including the Defined Benefit Plan, Target Benefit Plan, Age Weighted Profit Sharing Plan, Rate Group Benefit Plan (New Comparability), 401(K) Profit Sharing Plan as well as The Tax Reform Act of 1986, The Unemployment Compensation Act of 1992, The Omnibus Budget Reconciliation Act of 1993, The Small Business Job Protection Act of 1996, The Taxpayer Relief Act of 1997 and the Economic Growth and Tax Relief Reconciliation Act of 2001.


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Fred S. Shapiro, & Associates, Inc. provides consulting and administrative services for accountants, attorneys, financial advisors and their clients.


These services are described as follows:

New Plan Design

A. Initial, no-obligation interview with client to gather information and discuss possible tax-saving alternatives.

B. Analyses including specific recommendations of which type of plan or combination of plans best suit the client's needs. Preparation of proposals is included in new plan design fee.

C. Meeting with client and accountant/attorney/advisor to discuss specific plan information.

D. Plan Design

1. Preparation of plan and trust document.

2. 5300 Series Summary Form

3. Power of Attorney for Internal Revenue Service

4. Summary Plan Description

5. SS-4 filing for administrator and plan identification numbers.

6. Minutes of adopting new or revised plan.

7. Notice to Employees

8. Beneficiary Forms

E. Submission of proper forms and trust agreement to Internal Revenue Service.

F. Follow-up through plan approval (including initial formal amendments, if any, requested by the Internal Revenue Service).

G. Enrollment assistance, communicating plan concepts to employees.

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Annual Administrative Functions

A. Receipt of census data.

B. Determination of contribution limitations for the plan.

C. Determine ADP and ACP discrimination testing for non-highly compensated and highly compensated.

D. Calculation of Top-heavy Test limitations.

E. Actuarial calculations for Defined Benefit Plans.

F. Preparation of Internal Revenue Service Form 5500 Series.

G. Preparation of Pension Benefit Guaranty Corporation forms for Defined Benefit Plans.

H. Allocation of net investment account earnings.

I. Preparation of benefit statements for plan participants.

J. Preparation of required Summary Annual Reports for plan participants.

K. Calculation of benefits for a participant who has retired, died, become disabled or terminated.

L. Calculation of plan forfeitures, either reallocated to those eligible participants or used to reduce future contributions.

M. Assisting with employee presentation, promoting plan concept to employees.

N. Meeting at plan year end to deliver annual administrative package, discuss any questions with plan trustees, and develop future goals.

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Plan Revision

A. Analysis of existing plan concepts to determine need for updating and presentation of alternatives.

B. Preparation of plan and trust agreement incorporating the terms required by Revenue Ruling Procedure 93-39.

C. Submission of revised plan and all accompanying forms to Internal Revenue Service (See top for details)

D. Follow-through with the Internal Revenue Service until revisions are accepted.

E. Preparation of revised Summary Plan Description.

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Plan Termination

A. Preparation of Official Notice to Employees of intent to terminate.

B. Preparation of all necessary forms to be filed with government agencies (varies as to type of plan).

C. Obtaining approval to distribute plans assets to participants.

D. Calculation of pro-rata distributions.

E. Filing of final 5500 Series Forms.


The GUST amendments, for which the Internal Revenue Service is requiring all plans be rewritten to include, are summarized as follows:

Uruguay Round Agreement Act: - Or - GATT - (General Agreement of Tariffs and Trade) - Specifically, the law revises the minimum requirements for single-employer defined benefit plans and requires more disclosure of plan underfeeding to participants among other issues.

Uniformed Services Employment and Reemployment Rights Act: - USERRA - was designed to encourage non-career service in the the armed forces by eliminating or minimizing the disadvantages to civilian careers and employment, reemployment retention, promotion or any other benefit of employment on the basis of that service.

The Small Business Job Protection Act of 1996: - or SBJPA96 - this amendment affects the definition of Highly Compensated Employee, Family Aggregation, Testing methods, the definition of Compensation and lays the groundwork for the 401(k) Safe Harbor Options.

The Taxpayer Relief Act of 1997: - or TRA97 - this amendment affects certain limits for cash out thresholds, funding limits on Defined Benefit Plans, diversification of 401(k) investments, and several other provisions relating to pensions and other benefits.

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Fred S. Shapiro & Associates, Inc.

11408 Cronridge Drive

Suite I

Owings Mills, MD  21117



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