The Right 401k Retirement Plan for Your Santa Clarita Business.
Business is getting more competitive each year. In order for you to be a top-quartile company you need to retain the top quality employees that you have as well as constantly attract new talent. The future of your business depends on it.
The most successful companies offer employees all of the following:
- Great work environment (leadership, management, and challenging work)
- Complete compensation packages (salary, employee benefits, 401K program)
- Confidence in the long-term vision
401k Plan: Our Experienced Team Can Help
“One size does not fit all” – Our team is highly versed in the different retirement plans you can use to potentially lower your taxes as well as build employee loyalty. We’ll take the time to understand your goals before we design a plan for your company. We will take into account your goals for the plan, the size of your company and plan costs to determine the right fit. Our financial advisors can help you implement the proper retirement plan for the company and your valued employees. A 401k plan is not the right retirement plan for every business so our financial advisors will take the time to explain the various options available to you.
401k Independence Allows Us to Focus on Your Needs
Simply put, we work with the top providers in the 401k market. That includes Fidelity 401k, Principal 401k, ING 401k and American Funds. And unlike most firms, we don’t have a proprietary product so we remain neutral throughout the entire selection process.
“I have a 401k. Why do I need an advisor?”
As an employer, you share the responsibility for guiding your employees toward making decisions that will afford them greater financial freedom in retirement. But here’s the quandary: just as your workers look to you for financial guidance and advice, you must adjust to a sea change in plan regulation and administration.
Ongoing 401k Services:
- Employer: Managing a plan on your own can be daunting especially with the new rules and regulations coming out of Washington. We’ll work with you to select the proper investments for your plan but also ensure you’re not only informed of new rules and regulations but you’re prepared for your next audit.
- Employee: To ensure plan participants are getting the most out of the plan, we’ll also come to your worksite to provide education workshops on personal finance, retirement, and how to build a retirement portfolio. They’ll also have access to a local financial advisor (not a 1-800 number). And when employees are transitioning out of your company, we can work directly with them on their 401k rollover leaving your and your team focused on the business.
Offer your employees more. Learn about our Worksite Financial Solutions a guidance-based, beginning-to-end retirement solution designed to help your employees create confidence in their financial life.
Why Santa Clarita Businesses Choose Virtue
Already have a 401k or Retirement Plan?
The Dept of Labor expects you to know your 401k plan fees. Make sure you and your employees are not over-paying. Find out now before your next audit. You should review your plan every 2 years. Request a complimentary and discreet fee analysis to see how your plan fees compare.
Get a 401k Plan Fiduciary
Being a 401k plan sponsor is more complicated than ever and the demands keep growing. Learn how our 401k Fiduciary Service can help you share plan liability and take work off your plate. Read more: Retirement Plan Fiduciaries are more popular than ever.
SIMPLE IRA or 401k: What’s the Right Retirement Plan for Your Company?
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- Nobody likes paying taxes – With tax rates going up and tax deductions getting fewer and fewer, contributing to a 401k or retirement plan not only provides tax deductions but can build your retirement nest egg. And companies get a tax break for providing a plan to employees – And a tax credit to set one up!
- Your money grows tax deferred – All the growth and interest of your money in this account is exempt from taxes until you take it out. This means that more of your money can potentially accumulate. Ask us about the tax-free-growth option as well?
- There is a whole world of investment options – There are many different investment options available to you, whether you are aggressive, conservative, sophisticated or a beginner.
- Your assets are protected – Certain retirement plans will protect your assets from creditors.
- Employee retention and satisfaction – The key to any successful business is retaining key employees. Keep your employees happy and your business will thrive.
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- SEP IRA – You can contribute and deduct up to 25% of your net income. This account is very easy to set up and maintain. This account is the most common for sole proprietors and small businesses. Warning: if you have employees you may have to contribute for them and the SEP IRA may not be the best option for you.
- SIMPLE IRA – You can deduct up to $12,000 ($14,500 if you are over 50) annually. This type of plan requires a 3% employer-matching contribution.
- Individual or Solo 401k and Profit Sharing – This plans allows you to contribute up to $17,500 ($22,500 if you are over 50) of your income before tax. Additionally, you can contribute up to 25% of your net income into the profit sharing portion of the plan. Sometimes you can save more money in taxes by filling up the profit-sharing “bucket” first. Most people think they need employees to have a 401k, but this is not true.
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- 401(k) and Profit Sharing – This plans allows you to deduct $17,500 ($22,500 if you are over 50) from your taxable income. Additionally, you can contribute up to 25% of your net income into the profit sharing portion of the plan. Sometimes you can save more money in taxes by filling up the profit-sharing “bucket” first. There are many ways to structure this plan that can help you minimize contributions for employees and maximize tax savings. You can also add a Roth option to use after-tax dollars and receive tax-free retirement income.
- Executive Bonus Plan – This plan allows you to exclude employees and grow your assets tax deferred using after-tax dollars. Certain exclusions apply for this plan.
- Defined Benefit Pension Plan – A pension plan that defines a benefit for an employee upon that employee’s retirement. This benefit is predetermined by a formula based on the employee’s earnings history, tenure of service, and age. Contributions are tax-deductible and this type of plan tends to benefit older, longer tenured employees.
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Want another Tax Deduction? Consider a new plan. You may be eligible for $1,500 in tax credits. Ask us how during your free consultation.
Did You Know: “At least three-quarters of employed young adults say it is important for their employer to provide health insurance, a retirement savings plan, a wellness plan, and education and/or advice on how to save for retirement.” – AARP study (January 2008). Learn how Worksite Financial Solutions can help.
