401(k) Plans

We research available plans on an ongoing basis and strive to bring the best in the industry to you. For additional information on selecting the right plan for your specific needs, please contact us. We enjoy working with both companies and individuals and would enjoy the opportunity to help you find the best match.

If you are a participant and you are wanting to change your deferral allocations, click here for the form to complete. If you are looking for a Beneficiary Form, click here for the form to complete.

Cash or Deferred 401(k) Plan

Any profit sharing or stock bonus plan that meets certain participation requirements of IRC Sec. 401(k) can be a cash or deferred plan. An employee can agree to a salary reduction or to defer a bonus which he or she has coming.
Tax-exempt entities may also adopt a 401(k) plan.

How a Cash or Deferred 401(k) Plan WorksHow a cash deffered 401(k) works

● Employee has the option of taking cash or having it paid to the trust for retirement. This is equivalent to a tax-deductible employee contribution. However, employee deferrals are subject to FICA and FUTA payroll taxes, with applicable payments from both the employer and employee.
● Any additional employer contributions are tax deductible.
● Employer contributions, if any, are not taxed currently to the employee.
● Earnings accumulate income tax-deferred.
● Distributions are generally taxed as ordinary income; they may be eligible for 10-year income averaging,1 or, at retirement from the current employer, rolled over to a traditional or a Roth IRA, or to another employer plan if that plan accepts rollovers.

Solo 401(k) Plan

A “Solo 401(k)” is a regular 401(k) plan that covers only a business owner, or the business owner and his or her spouse. In such a plan, the business owner plays two roles, that of employee and that of employer.

How a Solo 401(k) Plan WorksHowaSolo401kPlanWorks

● As an “employee,” the business owner can choose to either receive cash (salary or bonus) or defer the funds into the 401(k) plan. If the 401(k) plan is chosen, these “elective deferrals” are not subject to current income tax, but are subject to FICA and FUTA payroll taxes.1 For 2015, employee deferrals are limited to $18,000. Additional deferrals of $6,000 may be made if the individual is age 50 or over.
● As the “employer,” the business owner may also contribute to the plan. For 2015, the employer’s deductible contribution is limited to 25% of the employee’s compensation.2 Employer contributions are not currently taxed to the employee.
● In 2015, total 401(k) contributions (from both employer and employee) are limited to the lesser of 100% of the employee’s compensation or $53,000. Assets in the plan grow on a tax-deferred basis. Distributions are generally taxed as ordinary income.
● All 401(k) plans must meet prescribed nondiscrimination tests. Plans in which the business owner, or the business owner and spouse, are the only employees, effectively avoid this issue. Just one additional eligible employee, however, can trigger these nondiscrimination requirements, increasing the administrative complexity and cost.

401(k) Reports

Pre-Selected Portfolios

401k Portfolio Snapshots