Participation in the Davis-Bacon Pension Plan & Trust means your employees also save the amount which they otherwise would have paid to FICA or income tax on their Fringe Benefits.
In addition to their tax savings, employees also accumulate tax-deferred earnings on their total Trust deposit. These funds will not be taxed until withdrawn, usually at retirement, which occurs without IRS penalties after age 59 1/2.
Employee Account Accumulation
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Based on $8.00/hr Fringe Rate
for 1,600 hours ($12,800/yr)
Assumed Rate of Return 8%:
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After 10 Years $ 92,000
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After 20 Years $292,000
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Approximate Tax Savings
