One specialty of A New Breed of CPAis the design and implementation of qualified and non qualified retirement plans for our business clients. A business client is a corporation, pass-through entity, or a Taxpayer filing a schedule C to Form 1040. Most of our business clients simultaneously operate both 401(k) plans and Cash Balance plans. Implementing a 401(k) plan is always the first step because of its flexibility; a Cash Balance plan is implemented if a client still has money available over and above lifestyle costs.
Employer sponsored qualified retirement plans are usually designed to maximize tax future retirement income.
For both business entities and individuals, nonqualified plan options arise when you still have, after maxing out your qualified plan contributions, income exceeding lifestyle costs.
If you are an individual, we review with you your IRA options, both traditional and Roth. Beyond that, the next step is to review with you the 401(k) or 403(b) plan offered by your employer. We also review your 401(k) plan document, times suggesting improvements that your employer can make.
Pension strategy is our recommended Third Party Administrator – TPA – for retirement plan administration services. Administration of qualified retirement plans is complex and regulated by the Department of Labor. As a part of their service, they prepare the required Annual capital form 5500.
Charles Tune CPA will help you gather data then submit it to Pension Strategies for a formal study. When the study is complete, we analyze the results to determine if implementing a qualified plan(s) is in your best interest and, moreover, that it would be cost effective. There are a lot of myths about the cost effectiveness of a qualified plan, generally a Cash Balance Plan, because all full-time employees must be covered. If your income is greater than your lifestyle costs, and you fit our client profile, contact us so we can explain the tremendous tax savings opportunities available with qualified plans. Qualified plans are an absolute necessity if you are in a retirement mode.