Most of us share similar financial goals: get organized with our money, stay clear of debt, accumulate enough money to retire comfortably one day, and - for those with kids - help pay for our kids' college education as we are able. As much as anything else, we want to enjoy life and not spend time worrying about money.
To-do List for Initial Meeting: Saving for retirement is a necessity for almost all of us, and doing so through an employer-sponsored retirement plan is one of the easiest ways to save for the future. Money is withheld from employees' paychecks each pay period to go into a retirement account, it (along with any employer contributions) is invested and allowed to grow, and over time employees can build a substantial retirement nest egg. An added bonus: employee contributions reduce their taxable income, allowing them to save money on income taxes. While most large businesses and non-profit organizations have retirement plans in place (401(k)s and 403(b)s being the most common), many smaller businesses and non-profits (such as those with 10-25 employees or fewer) do not offer retirement plans due to the perceived high cost, administrative headaches and/or lack of knowledge. We specialize in affordable retirement plans for small businesses and non-profits with 50 or fewer employees. A retirement plan can make a small organization stand out from the crowd and help attract and retain valuable employees.
Wouldn't it be nice to "have all of your financial ducks in a row" and know that you are on the right track with your money?
We work with clients to do just that using a 3-step process.
Step 2 - After our initial meeting or phone call, we put together a 4 - 6 page packet of personalized information and recommendations for you. Then, we schedule a 2nd follow-up meeting or phone call to share this information with you.
Our recommendations may include... (*Click to display*)
For parents with school-age children... (*Click to display*)
For those with existing investment accounts... (*Click to display*)
After reviewing and discussing our recommendations, we explain how we work with clients, including the fees we charge, and if we mutually agree to move forward and work together, we proceed to step 3.
Step 3 - If we mutually agree to move forward and begin working together, we begin to take action:
We take the lead in getting things done so our clients can focus on living, working and enjoying their daily lives. We keep track of the details, and over time, we periodically communicate with clients to review our progress, revisit goals, update our "to-do" list and make adjustments as necessary.
See the "Additional Information" link at the bottom of this page for more information about our financial planning and investment management services.
**Retirement Plans for Small Businesses and Non-Profit Organizations**
7 Common Retirement Plan Questions
Question:
Answer:
1) What are the main retirement plan options available?
1) The most well-known options are 401(k), 403(b), SIMPLE IRA, SEP-IRA and Individual 401(k). All of these plans allow employees to defer part of their salary into a retirement savings account and invest their money. Annual employee contribution limits range from $13,000 to $19,000 for employees under age 50 and $16,000 to $25,000 for those age 50 or older. Most plans also require the employer to at least offer to contribute to employees' accounts.
2) Why choose one option vs. another?
2) These plan options differ by contribution limits, employer matching provisions, vesting schedule, availability of loans, maximum number of employees allowed, type of intended employer (for profit vs. non-profit), etc. They also differ in complexity and cost of plan set up and administration.
3) What if I'm self-employed and have no employees?
3) A SEP-IRA or Individual 401(k) will allow a business owner with no employees to defer and save a significant amount of money in his or her retirement plan account (up to $56,000 in 2019). Deferrals are deducted from gross income, saving the business owner in income taxes owed in the year of the deferral..
4) Do I have to contribute money on behalf of my employees?
4) In general, if the business or non-profit has employees, there must be some provision to either contribute to employees' accounts each year or offer a matching contribution (ex. 3% of employees' salary). However, the employer can limit eligibility for its retirement plan (must have worked for company for some number of years) and/or create a vesting schedule for employees to fully earn employer contributions.
5) What is a plan custodian?
5) A plan custodian is the financial institution that will maintain employees' retirement plan account. We will recommend a custodian based on several factors: low fees, quality investment options, good customer service, etc.
6) What costs and fees can I expect?
6) You can expect to pay an up-front fee to get your plan set up (plan documents, employee enrollment, IRS forms, etc.) and an on-going administrative fee to keep your plan in compliance and have all annual filings and duties performed. Fees for 401(k) and 403(b) are generally higher than those for SIMPLE-IRA plans, and fees vary with the number of employees participating in the plan. Fees for plans set up for businesses with no employees (SEP-IRA or Individual 401(k)) are minimal.
7) How do I get more information about which type of plan is right for my organization?
7) Call or e-mail us. We will meet with you or talk on phone, ask questions about your organization and your preferences, then explain your plan options to you along with an estimate of costs to get things set up.
***Additional Information***
Click here to view additional information, including fees we charge, our account custodians and account minimums. (This will open a new window.)
R1 Financial Group
13154 Coit Rd., Ste. 102C
Dallas, TX 75240
Phone: (214) 628-9100
E-mail: Brad@R1FinancialGroup.com