When working with an advisor, we strive to make the process of retirement plan coordination easy for the client as well as the advisor. If the client is establishing a retirement plan for the first time, we provide several plan design options for their review. Often the discussion focuses on what benefits the owner can fund for themselves and the amounts to be funded for each employee. The client may have the desire to make certain employer funding optional or mandatory. We strive to provide the flexibility the client and advisor need to make the retirement plan a success.
Existing 401(k) plans allow the advisor and our firm to review the current design and make suggestions for updates. Often, the written plan document is different from the actual operation of the plan and allows us the opportunity to align the features and operation as required. We can also discuss service issues. Benefits Administrators’ service model for the client and advisor is a single point of contact. We assign the client and advisor to one administrator in our firm which forms a relationship with all parties as well as cohesive communication.
Retirement plans can seem complicated but Benefits Administrators will always strive to simplify the options and make it easy for all parties.
This is an example for a startup retirement plan reflecting the option of a 401(k) with a safe harbor match of 4% versus a SIMPLE IRA plan. By using an example, it allows the advisor and client to clearly see what each employee would be receiving as a potential annual benefit and what percentage of the benefit is contributed to the owner versus the employees.
We find that the advisor and client truly appreciate a “number” versus percentages.
The client and advisor can see the amounts to be funded by each employee via deferral (from their paycheck) versus the company match which would be contributed and tax deducted by the client on behalf of each participant via the 401(k) with a 4% safe harbor match formula.
Benefits Administrators will supply the advisor with sales presentation assistance if desired. In a presentation, the advisor reviews the investments and options while our firm presents the plan design options and technical expertise to the client as a joint effort. We will also assist the advisor with any paperwork needed by the investment company.
We are also available to the client and advisor for annual plan review meetings which allows us to proactively provide the client with information regarding potential legal changes to the retirement plan industry as well as their specific plan. Clients’ needs are ever changing and we certainly look to provide proactive solutions to their needs.