5 Questions to ask when evaluating your retirement strategy

  1. Have you reviewed options that will allow you to maximize your tax deductible savings up to $60,000 per year for those age 50 and up in 2017?
  2. Do you have options that can help reward key employees in your firm while reducing your social responsibility payments like social security and worker's compensation?
  3. If you only have a Profit Sharing plan, have you considered adding a 401(k) plan?
    It is important to know that if you only have a profit sharing plan, that plan may not exempt you from your mandatory state retirement programs. These new and evolving programs are in various stages of the legislative and regulatory process in 40 states. You will need to keep a watchful eye on what the regulations will require of you in your state.
  4. How can you save the right amount for you?
    If you have wanted to save more on a tax deductible basis, but have not been able to, take time to consider that the plan or plan provisions you currently have should be revised. Or if you currently have a 401(k) plan and are frustrated by salary deferral limitations, you may want to consider amending the plan to a non-elective safe harbor plan or a safe harbor match plan.
  5. Do you know what your plan costs are?

Regardless if you have a plan or not, you want to make sure all plan costs are disclosed. A plan cost disclosure form called a 408(b)(2) disclosure should identify the various costs in your plan. If a 401(k) vendor lists a lot of language and where to look elsewhere, you may want to consider another provider.

If you have a plan and are looking to optimize it or don’t have a plan but are looking to start, remember that it is never too late to implement or change something at your firm. While sometimes you can't effect changes this year, you can definitely start preparing for next year. If you have a SIMPLE IRA plan and want to adopt a 401(k) plan, you must serve notice to all employees at least 60 days before the end of 2017 that you are closing your plan. You can't have a SIMPLE IRA and another plan in the same year. So be sure to get clarification on transition issues. And, you really shouldn't close your SIMPLE IRA within two years of adoption. Enhancing personal savings for yourself and your firm is always a good retirement strategy. Take time to review your options today.

A Closer Look at Our Startup Accelerator Companies

The CPA.com/Association of International Certified Professional Accountants Startup Accelerator is an annual program that finds, invests in, and guides early-stage tech companies with solutions that support accounting and finance professionals. This blog series provides a deeper look at the five companies in the 2021 cohort.