Should I reevaluate my current Retirement Plan?
Jim and Janice are owners of a small, predominantly family owned business with six employees. They were utilizing a 401(k) offered to multiple businesses through an employer organization. This plan had insignificant administrative expenses; however, the investment options were limited and came with high internal fees.
With the current tax code, Jim and Janice were able to modify their 401(k) Plan and add a Profit-Sharing Plan. We modified the plan with the goal of keeping administrative costs reasonable and reducing internal expenses of the 401(k) through proper investment selection within the plan. We then worked closely with an actuarial group and added a cash balance pension plan to the mix.
When creating a retirement plan for a small business, it is critical to work with someone who is well-versed in the retirement plan space who can utilize all the benefits available to the business under the current tax code. We encourage you to reach out to us for a business plan review to see if you can benefit from a new plan design.