An owner-only 401(k) plan is an approach to blend the tax advantages of an employer-sponsored retirement plan with pre-tax personal retirement savings. A Financially-Independent Retirement According to a recent Social Security Administration study, most adults over 55 are not financially independent during their retirement years. 34.0% of retirees have incomes under $20,000 26.5% of retirees … Continue reading Why Business Owners are Turning to Owner-Owned 401(k) Plans
Offering a retirement plan is often necessary for a business to attract and retain the best employees. There are seven major types of retirement plans utilized by companies: Defined Benefit Plans Defined Contribution Plans Profit Sharing Plans 401(k) Plans Roth 401(k) Option Simplified Employee Pension Plans SIMPLE Retirement Plans Determining which type is best for … Continue reading Does Your Business Offer One of These Retirement Plans?
An owner-only 401(k) plan is a way to combine the tax advantages of an employer-sponsored retirement plan with pre-tax personal retirement savings. Reaching a Financially Sound Retirement The Social Security Administration estimates that less than 20% of retirees have an income of more than $75,000. This means that 4 out of 5 people who are … Continue reading Owner-Only 401(k) Plans vs. Other Retirement Savings Options
A Selective Executive Retirement Plan (SERP) is the solution to a problem faced by many smaller corporations: difficulty in hiring and keeping key executives and an inadequate qualified retirement plan benefits payable to key executives and owners. Most businesses that are successful have at least one key employee who is responsible for the growth and … Continue reading Are SERP Benefits a Solution for Small Business?
Successful businesses and key employees go hand in hand. Often, a successful business has at least one key employee who is responsible for the success or failure of the business. If a business loses one of these key employees, a business can experience several problems. Reduction in Earnings – If a few key employees are … Continue reading What is a Selective Executive Retirement Plan?
Certain employees are extremely valuable to a business due to their knowledge, skill set, or investment in the company. Therefore, arming these employees with life insurance can protect a business that may suffer financial loss if the employee becomes unable to work due to disability or death. The Mechanics of a Business Split-Dollar Life Insurance … Continue reading Protect Your Business with a Split-Dollar Life Insurance Plan
The successful businessman, Andrew Carnegie, stated, “Take away my factories, my plants; take away my railroads, my ships, my transportation; take away my money; strip me of all of these, but leave me my men and in two or three years, I will have them all again.” Carnegie understood that in order to be successful, … Continue reading How to Solve Executive Benefit Planning Issues