1 / 17

Choosing the Right Retirement Plan

Choosing the Right Retirement Plan. Why Offer a Retirement Plan?. Help employees save for a more secure future Attract and retain quality employees Tax savings for employees & employer Help secure your own retirement. Who Can Start a Retirement Plan.

walthall
Download Presentation

Choosing the Right Retirement Plan

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Choosing the Right Retirement Plan

  2. Why Offer a Retirement Plan? • Help employees save for a more secure future • Attract and retain quality employees • Tax savings for employees & employer • Help secure your own retirement

  3. Who Can Start a Retirement Plan • There’s a plan for every type of business • Sole proprietor • Partnerships • C Corporation • S Corporation • LLC & LLP

  4. IRA-based Plans • Payroll Deduction IRA • SEP IRA • SIMPLE IRA

  5. IRA-based Plans • Filing requirements • Type/size of employer who might choose an IRA-based plan • Pros and cons • Common mistakes

  6. IRA One Rollover Rule • Bobrow v Commissioner v Pub 590 • Announcement 2014-15 • One rollover allowed per taxpayer per 12-month period • Generally effective in 2015

  7. IRA One Rollover Rule • What is a rollover? • A trustee-to-trustee transfer is not a rollover • How to meet this new one rollover rule

  8. Profit-sharing Plans • Must cover all employees age 21 and who work 1,000 hours • Contributions are discretionary each year • Allocated by formula set in plan • Profits not required

  9. Profit-sharing Plans • Filing requirements • Type/size of employer who might choose a profit-sharing plan • Pros and cons • Common mistakes

  10. 401(k) Plans • Must cover all employees age 21 and over who work 1,000 hours • Employees defer a portion of salary • Deferrals can be pre-tax or Roth • Employer contributions and match

  11. 401(k) Plans • ADP/ACP testing • Safe Harbor 401(k) Plan • Automatic Enrollment 401(k) Plan • Roth 401(k) feature

  12. 401(k) Plans • Filing requirements • Type/size of employer who might choose a 401(k) plan • Pros and cons • Common mistakes

  13. Defined Benefit Plans • Gives you a definite benefit (monthly income) at retirement • Has yearly funding requirement set by an actuary • Must cover all employees age 21 and over who work at least 1,000 hours

  14. Defined Benefit Plans • Filing requirements • Type/size/age of employer who might choose a defined benefit plan • Pros and cons • Common mistakes

  15. Didn’t Get it Right? • Use IRS correction program to fix: • Missed contributions • Omitted employees • Skipped plan amendments • Some mistakes corrected without IRS contact

  16. Questions and Resources www.irs.gov/retirement RetirementPlanQuestions@irs.gov 877-829-5500 Newsletters Extra! Extra! Hear The Latest Retirement News and Hot Topics!

  17. Contact Information Linda Thomas-Glenn Employee Plans Specialist Tax Exempt/Government Entities 267-941-2130 Linda.H.Thomas-Glenn@irs.gov

More Related