Specialized industries require specialized plans. The services you provide and products you create define how you hire people and what benefits you provide to your employees. Your retirement plan needs to be tailor-made to suit the demographic of the staff and key employees since a bad fit can result in unnecessary contributions or undue administrative practices.
We serve a broad range of clients from sole-proprietor real estate agents to restaurants with thousands of employees — one size certainly does not fit all.
The safe harbor provision has boosted the retirement savings of hundreds of thousands of middle-class Americans. Its main purpose is to provide a mechanism for business owners to maximize their 401k each year no matter how their employees choose to participate. The trade-off is that employees that do participate must receive some form of employer contribution. Does your plan require safe harbor, thus the mandatory employee contributions? Maybe! Maybe not...
One of the plan design options that
The maximum contribution any American can push into a 401k profit sharing plan is $55,000 in 2018. If this is news to you, give us a call. Many people think the maximum is $18,500 but that limit is only applicable to salary deferrals and doesn’t take employer contributions into account! Yes, most of the time getting business owners a $55,000 contribution comes with some additional contributions to the rank-and-file but, depending on the industry and demographic, the share of the overall contribution to owners and targeted employees can be more than you think. It’s certainly worth the free exercise, don’t you think?!