Serving San Antonio and Boerne, TX since 1990 | 830-331-9337

GWM-Insurance-Brokers

401k Retirement plan

When asked a majority of us do not expect to receive Social Security the way it was originally designed and younger people do not expect receive anything.

 

This makes the 401k More important to the worker than ever before.

 

Employers are now able to design the best 401K Retirement that best suits the owners and employees.

 

Start up plans are affordable.

 

Start up costs: Drafting the ERISA document can be done by a TPA for about $1,000

TPA annual administration is usually about $1200 per year roughly $100 per month.  These admin costs can be charged against the fund or paid by the plan. These fee's Include the filing of the 5500 IRS form.

Annual reviews are important to insure the fiduciary requirement is being met.  When assets grow, fees can be reduced, but must be applied for, often the funds need to be moved to another manager to reduce costs.

 

Things to consider:

1. Enrollment options

 

2. How many investment options are desired, do our QDIA options to comply with IRS rules?

 

3. Estimated annual deposits?

 

4. Amount the owner wants to deposit (determines Plan design, defined benefit, Safe Harbor...

 

We will design a plan that will benefit the employer and employees. We will help the employer Understand his fiduciary duties under section 408(b)(2), 3(21), and 3(38).

 

Example: Owner wants a 401k and wants to deposit $15,000 per year.  The SafeHarbor can be the least expensive. The regular 401k limits the amount the owner can deposit to a maximum of 2% over the employee's average.  The Safe Harbor 401K eliminates the need for  discrimination testing which the 2% rule is excluded.  

 

The Safe Harbor plans allows the employer to match the employees deposit dollar for dollar up to 3% and 50 cents for the next 2%. This is the most common safe harbor, there are many other desgins. This match limits the employer cost to 4% of payroll, this match is paid only if the employee chosses to the participapates. Owner can deposit in excess of his $15,000 goal under the Safe Harbor rules, these amounts are increased each year.  Defined benefit plans allow Owners to deposit $150,000.00 plus, depending on plan design.  Call us for more details 888-248-3537.

Browse Medical and Medicare Plans and Pricing Providing basic information to help us customize a plan for you.

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It is easy and affordable to apply for a Health Savings Account (HSA). There are no set-up fees and a simple, 4-step enrollment process – which only takes 10 minutes to complete!

Discounts-By-Design HSA-Bank

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DISCOUNT PROGRAMS

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Individual Online Enrollment

Health & Lifestyle Discounts

Health Savings Account

Metal-Gap

IRA Retirement

The IRA (Individual Retirement Annuity): Is exactly what it infers.  The Term Annuity is Synonymous with Savings Account.  Annuities are offered by Insurance companies.  Banks and Savings and Loans offer savings accounts or CD's.

 

Annuities are usually offered by Insurance companies and are tax deferred savings.  The Annuities are either non-qualified or qualified.  Tax deferred means that you do not have to report the interest growth until you remove it from the annuity. You are required to pay income tax when you with draw your funds.  You pay tax only on the intrest growth of the non-qualified plan, but you are required to pay tax on 100% of the with drawal from the qualified plan. Note: There is a 10% penalty on funds withdrawn before age 59.

 

The IRA is called a Qualified Account:  A qualified account means the money deposited is exempt from Federal Income tax.  You do have to pay FICA (Medicare & Social Security Retirement) tax on the funds before you deposit them.

 

Annuities can be a variable, indexed, and fixed interest.  The variable annuity is the greatest risk (Stock investments) and the fixed is the safest low risk investment with a guaranteed interest rate.

 

We have a full line of annuities.  Many companies will require a minimum deposit of $100 per month.  Annuities are a great way to save and the funds are passed directly to the person you name as beneficiary if you pass, this provision by passes probate.  This can be very important.

 

Single Premium immideate annuities are used when you are ready for a payout of your 401k, IRA, or other retiement plan.  The Immidieate annuity takes your age (usually 65 or older and determines the payout to you)  You are guaranteed to receive the agreed amount until you pass away.  The most popular option is 10 year guaranteed with a life benefit.  This means that if you pass before the 10 year period a named beneficary will be paid the proceeds for the remainder of the ten years.  

 

Contact us today: we will provide you with information to help you make the decision which is best for you.