For Employers and Businesses

David works with many large and small corporations, and self employed persons, to help them identify retirement and insurance programs that offer the best fit for their needs. These areas include qualified and non qualified retirement planning, employer sponsored 529 college savings plans, and certain group insurance benefits such as vision and dental coverage.

Members of the professional resources group are available to provide services that are related to taxation, legal guidance, and commercial insurance.

Qualified Retirement Planning* – Many options exist for making retirement investment plans available to your employees. I frequently work with small to medium sized corporations in this area, and have made use of the following types of plans in this regard:

SIMPLE IRA – SIMPLE is an acronym that stands for Savings Incentive Match Plan for Employees. Contributions into these plans are deducted on a pre-tax basis from the paycheck of the employee, and the contributions are matched on a pre-tax basis. Unlike traditional 401(k) plans, there are no “top heavy” testing requirements, there are no “5500 forms” to file, and is very inexpensive to establish.

Simple IRA

How Simple IRA Works

SEP IRA – “SEP” is an acronym for Simplified Employee Pension. Contributions into these plans are qualified for all employees (who meet the eligibility requirements of the 5305 IRS Model Adoption Agreement). Contributions to the Plan are tax deductible. Contributions are not required each year, and generally there is little in the way of administrative expense.  All balances in the participant’s accounts are 100% vested at all times, and penalties apply for the early withdrawal of funds before the attainment of age 59 ½. Although the employer makes the contributions to the individual SEP IRA account of each participant, each participant directs their investment portfolio. To view additional information with regard to SIMPLE and SEP IRA plans of which I've made frequent use, please return to the home page of this website, and click "Featured Links" on the left side menu. From there, click "Employer Sponsored Retirement Plan Alternatives".


How SEP IRA Works

401(k) and “Simple K” – These are the more well known, traditional qualified plans. I have made exclusive use of the traditional and “Simple K” versions of these plans offered by Ameritas. To review additional information about these plans, return to the home page of this website, and click "Featured Links" from the left side menu. From there, click "Ameritas 401(k) Options" to view the information available from the Ameritas website. Within these plans, you generally have the administrative expense of design and implementation, and for that of on going service. These services include the provision of client communications, a participant website, and for the plan testing that is required. As a rule of thumb, it is a good idea to have twenty five or more employees that participate in the traditional 401(k) plan, before an employer might see the expenses of the plan, offset by the amount of payroll tax saved upon the pre-tax employee contributions.

How a 401(k) Works

Non Qualified Plans – Generally, these are plans that are used to “wrap” around the qualified options made available to your employee populous. The non qualified plans are of key use to those that are considered “highly compensated”, or otherwise find their contributions to the qualified plan limited by average deferral percentage caps. These plans are also commonly used to attract and to retain “key” employees of the corporation, and can be designed so as to provide a stable retirement income to compliment that which is generated by the qualified plan options.

How Non Traditional Defined Contribution Plan Works

Business Continuation Plans - In many instances, were the sudden loss of a principal or key employee of a company to occur, the company could be devastated financially. Additionally, those who own shares of privately held stock should consider the implication of their death, relative to the value and ownership of the stock held. In many cases, there are restrictions upon who may own such stock, and in many cases the value of the ownership may represent a large percentage of the wealth that a surviving spouse might inherit. Buy out plans exist to address these issues. Depending upon the ownership structure of the corporation, there will be one approach that makes more sense than the others. When funded with life insurance, this alleviates the surviving partners from having to generate a large cash sum with which to redeem stock from a surviving spouse. Furthermore, it guarantees a value to be transferred to that surviving spouse, making it easier to plan for the transfer of that value.

How Buy Sell Agreements Work

How Cross Purchase Buy Sell Agreements Work

Funding a Buy Sell Agreement

Key Employee Insurance