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

This makes the 401(k) retirement plans extremely important to workers nearing retirement than ever before.

Employers are now able to design the best 401(k) retirement plan that suits owners and employees best.

Start-up Plans Are Affordable

Drafting the Employee Retirement Income Security Act (ERISA) document can be done by a third-party administrator (TPA) for about $1,000.

TPA annual administration is usually about $1,200 per year (approximately $100 per month). These admin costs can be charged against the fund or paid by the plan. These fees include the filing of the 5500 IRS form.

Annual reviews are essential to ensure 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 qualified default investment alternative (QDIA) options to comply with IRS rules?
  3. Estimated annual deposits?
  4. Amount the owner wants to deposit, which determines plan design, defined benefit, safe harbor and more.

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

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

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


An individual retirement account is an annuity is synonymous with a savings account. Annuities are offered by Insurance companies. Banks and savings and loans offer savings accounts or certificates of deposits.


Annuities Are Usually Offered By Insurance Companies and Are Tax-deferred Savings

The annuities are either nonqualified 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 withdraw your funds. You pay tax only on the interest growth of the nonqualified plan, but you are required to pay tax on 100 percent of the withdrawal from the qualified plan. Note: There is a 10 percent penalty on funds withdrawn before age 59.


An IRA Is Called a Qualified Account

A qualified account means the money deposited is exempt from federal income tax. You do have to pay Federal Insurance Contributions Act (FICA) ― Medicare and Social Security retirement ― tax on the funds before you deposit them.


Annuities Can Be Variable, Indexed & Fixed Interest

The variable annuity is the most significant risk ― stock investments ― and the fixed is the safest low-risk investment with a guaranteed interest rate.


We Offer a Complete 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 bypasses probate. This can be very important.


Single Premium Immediate Annuities

These are used when you are ready for a payout of your 401(k), IRA, or other retirement plan. The immediate 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 beneficiary will be paid the proceeds for the remainder of the 10 years.


Contact Us Today

We will provide you with all the information at our disposal to help you make the decision that is best for you.

Get a free policy review and consultation.
Call us now toll free: 888-248-3537


Monday to Thursday: 9:30 a.m. to 4 p.m.
Friday: 9:00 a.m. to 12 p.m.
Saturday: By appointment only
Sunday: Closed
Extended hours by appointment


Main: 830-331-9337
Alternate: 210-403-0242
Tollfree: 888-248-3537





Self & Family