"Contributions to a retirement plan today can help you meet tomorrow’s goals of financial independance."
Attracting and retaining exceptional employees has never been more important – and a qualified retirement plan can be a powerful differentiator for your organization. Look to the Raymond James advisors at McNeely Financial Strategies for proven expertise in the selection, implementation and ongoing coordination of retirement plans. Here, you won't be pressured to take a proprietary product.
Choosing the Right Retirement Plan for Your Business
Many business owners today are faced with an increasing need to provide a retirement benefit for themselves and their employees. At McNeely Financial Strategies, listening to you and helping you and your employees plan for retirement are top priorities. Selecting the right retirement plan for your business is a crucial step and providing one has many benefits. One advantage is that contributions to a retirement plan today can help you meet tomorrow’s goals of financial independence. Another is that establishing a retirement plan may provide tax advantages. Eligible contributions are deductible expenses to your business, and all contributions grow tax-deferred until withdrawn. Still another benefit is that it can create positive employee relations, helping to attract and retain quality employees, while reducing turnover.
For many business owners, the question is not “Should I implement a retirement plan?” Rather, it is “Which plan is right for my business?” The choices are many: SEP, profit sharing, 401(k), SIMPLE IRA and defined benefit, to name a few.
- Help your employees – and protect your organization with the right 401(k) plan.
- Simplify your accounting process with a Simplified Employee Pension Plan.
- Support your workforce with a low-cost alternative called the (SIMPLE) IRA.
- Get design flexibility and discretion in contributions with a profit sharing plan.
Benefits of Retirement Planning at Mcneely Financial Strategies
Our approach is different from other firms in that we do not have a proprietary fund package on top of its list of retirement plan alternatives and services. We utilize what we believe to be the top providers in the retirement plan market. This allows us to maintain a more consultative approach to help our clients select the package that best fits the needs of their businesses. In addition, we work with many professional plan administration firms within the industry, so we can help provide solutions to more complex plan designs or compliance needs that may arise with a customized plan.
General Rules
The following summary is designed to help you in clarifying these ideas relative to the plan selection.
- For employers with a long time horizon to fund a plan for their employees, defined contribution plans work well.
- For sole proprietors or small business owners wishing to minimize administrative costs, a SEP or SIMPLE may be the best choice.
- For small business owners without employees wishing to maximize contributions, a one-person 401(k) may be the right plan.
- Profit sharing is appropriate if discretionary contributions or a vesting schedule are important.
- For employers with older key employees, defined benefit or age-weighted plans may be more appropriate.
- For employers who wish to have their employees fund a portion of the retirement cost, a SIMPLE or 401(k) plan may be most suitable.
Conclusion
What is the right retirement plan for your business? The retirement plans discussed here illustrate that there are a wide variety of choices available to you as a business owner. With help from your financial advisor – a professional committed to your needs – you can choose the plan that best suits your business retirement plan needs and objectives. Of course, we cannot offer legal advice to clients. Before implementing any plan, you should consult with your tax and/or legal advisors.
For more information about any of the qualified retirement plans mentioned here, please contact McNeely Financial Strategies.
