A. It is a plan that allows the GMAC Real Estate Broker to contribute a percentage of a Sales Associate's annual commissions into a non-qualified deferred compensation plan.
Q.
Who is eligible?
A. The plan is discriminatory in that only Sales Associates who meet a certain sales volume (as established by the Broker) and who participate with the Agent Security Plan are eligible for the matching contributions.
Q.
How does it work?
A. The Broker will establish a separate account for the benefit of each qualifying Sales Associate. The Broker owns these assets and accounts for them on their balance sheet with a corresponding liability for each participating Sales Associate.
Q.
Can the Sales Associate be vested?
A. A vesting schedule can be added for the Incentive Matching account. If a Sales Associate leaves before being 100% vested, the non-vested amounts remain as assets of the Broker. Agent Security Plan SEP contributions made by the Sales Associates are always 100% vested.
Q.
When are Funds Distributed?
A. Benefits are paid out of the accounts at normal retirement or upon termination of employment from the Broker. Only the vested amounts are distributed.
Q.
What are the tax consequences of the Incentive Matching Program?
A. As Sales Associates receive distributions from the Incentive Account, distributions are taxable as ordinary income to the Sales Associate and the assets in the company account are owned by the Broker. All qualifying distributions are tax deductible to the Broker. Distributions are not eligible for tax-free rollovers.
Q. Where will the Incentive Account be invested?
A. The Incentive Account will be deposited in the same type of investment as the SEP account selected by the Sales Associate.
Q.
What services are provided?
A. Benefit consultants of The Bryton Companies work closely with you to answer all questions and to help make enrollment easy. We provide documents, on-going service and monitoring of the Plan for continued efficient operation. Call Bryton's toll-free number for help with any questions.
Q.
What if I have more questions?
A. Contact our benefit consultants at The Bryton Companies at 1.800.288.9522 or by clicking here.
