Small Business Retirement Plans

One of the largest tax deductions for a business owner or individual is a retirement plan. We specialize in helping folks with retirement plans. Whether you are a small business owner trying to start or manage a plan, or you are an employee trying to understand how to invest your 401(k), 403(b) or IRA, we can help. And, with our fee-only approach, you can rest assure we won’t push you into products that pay fat commissions since we are never paid with commissions or sales fees.

Starting a new Retirement Plan?

Starting a retirement plan can be easier than most business owners think. Plus, there are several tax advantages for both the employer and employee. We will help you with every aspect of starting and managing your plan so you can stay focused on running your business.

Retirement Plan Tax Advantages:

Employer contributions are deductible from the employer’s income.

Employee contributions (other than Roth contributions) are not taxed until distributed to the employee.

Money in the plan grows tax-free.

Other Advantages:

  • You and your employees can set aside large amounts for retirement due to high contribution limits
  • Employees age 50 and over can make extra contributions with “catch-up” rules.

  • There is a tax credit equal to 50 percent of the cost to set up and administer the plan, up to a maximum of $500 per year for each of the first 3 years of the plan. The tax credit helps small employers cover some of the costs of starting a SEP, SIMPLE, or certain other types of retirement plans.
  • There is a tax credit for certain low- and moderate-income individuals (including self-employed) who make contributions to their plans (“Saver’s Credit”). The amount of the credit is based on the contributions participants make and their credit rate. The maximum contribution eligible for the credit is $2,000. The credit rate can be as low as 10 percent or as high as 50 percent, depending on the participant’s adjusted gross income.
  • A Roth program that can be added to a 401(k) plan to allow participants to make after-tax contributions into separate accounts, providing an additional way to save for retirement.

  • Distributions upon death or disability or after age 59 1/2 from Roth accounts held for 5 years, including earnings, are generally tax-free.

Already have a Retirement Plan for your business?

If you are like most small business owners, you established a retirement plan as a benefit to your employees and to build your retirement savings. You know how overwhelming the details of running a business and retirement plan can be. Now there is help. At Picket Fence, we have developed a plan focused on small business. Now you can access the same benefits and cost structure that mid-size and large companies receive. Our platform offers a comprehensive service with fiduciary support, low cost investments, transparent fees and employee education.

What are the responsibilities of plan fiduciaries?

Fiduciaries have important responsibilities and are subject to certain standards of conduct because they act on behalf of the participants in the plan. These responsibilities include:

  • Acting solely in the interest of plan participants and their beneficiaries, with the exclusive purpose of providing benefits to them;
  • Carrying out their duties with skill, prudence, and diligence
  • Following the plan documents
  • Diversifying plan investments
  • Paying only reasonable expenses of administering the plan and investing its assets
  • Avoiding conflicts of interest.

Picket Fence acknowledges, in writing, a fiduciary role, which makes us liable for the plan along with you. We work with you to establish processes to minimize corporate and personal liability. We create a fiduciary file that documents the oversight process. We then update this file on a regular basis with you so we can easily demonstrate compliance with current ERISA laws and DOL mandates.

Additionally, we stand ready to handle any service issues or compliance corrections so you can focus on running your business, not your retirement plan.

We developed a 401(k) Toolkit which will help you grade your plan and create a Fiduciary Audit File.

If you want professional help, give us a call.