Small Business Retirement Plans

How We Help Clients

Small business owners often seek to offer retirement plans not only as a tax-efficient way to invest beyond their business, but also to provide valuable benefits to their employees. However, navigating the complexities of these plans can be time-consuming and costly. 

Plan Design and Contribution Tax Strategy for Business Owners

We specialize in retirement plan tax planning for the business owners, filling the gaps your TPA and accountant often do NOT cover.

We analyze and give guidance on: 

  • Your Contribution Types: Traditional vs. Roth 401(k) salary deferrals, after-tax, profit sharing, and how they impact your overall tax situation.

  • Your Other Key Deductions: We evaluate how your retirement plan contributions impact and potentially reduce or enable valuable deductions.

  • Your Spouse’s Employer Retirement Plan: We analyze the plan features and how it should influence your own contribution strategy. Especially when they work in a completely different industry. This can present unique but often overlooked planning opportunities.

Employee Financial Wellness and Planning

Numerous studies have shown that 401(k) plans that have well-rounded benefits help to keep your staff happy and makes your business more competitive.

We help employees:

  • Financial Planning for Employees: We host an annual group planning session to help employees establish their own financial plans.

  • New Employee Onboarding: We help employees understand their retirement plan, how to properly fund it to receive the full match and understand profit sharing contributions (when applicable). 

  • Education on Investment Options: We educate participants on the available investments line-up, typically during the annual group session and onboarding. 

 

Investments, Monitoring, and Fee Benchmarking

We help the plan sponsor with:

  • Investment Line-Up Guidance: We help select and monitor the investments line-up and determine one that is most suitable for you and your employees.

  • Collaborating with Your Professional Team: We work with your TPA (third party administrator) and Accountant to ensure your plan stays compliant, help you stay on top of required items like Form 5500, and Annual Notice Filings to plan participants

  • Competitive Fee Analysis: We help with analyzing and ensuring your TPA, Recordkeeper, Investments fees, and Advisor fees stay competitive.

 

Sample on My Presentation Style On Investments Education

Tax Savings with a New Retirement Plan

Startup Plan Tax Credit

What is it? A credit for small business employers (less than or equal to 100 employees) who start a new retirement plan such as a SEP, SIMPLE IRA, or a qualified plan (like a 401k plan).

How much? Eligible employers may be able claim a tax credit up to $5,000 for 3 years. 

Additional $500/year. An eligible employer that adds an automatic enrollment feature to their plan can claim this additional amount of $500 per year for a 3-year taxable period. 

Source Info: Retirement plans startup costs tax credit | Internal Revenue Service

Deductibility of Contributions and Expenses

Employer contributions to a qualified retirement plan are potentially tax deductible as a business expense.

Administrative expenses paid by the employer are also deductible. 

Source Info: Publication 560 (2024), Retirement Plans for Small Business | Internal Revenue Service

ADP - SECURE 2.0 Act Tax Credit Calculator

SECURE 2.0 Act Tax Credit Calculator | ADP