401k Administration
In Phoenix, Arizona
401k Administration For Businesses
401(k) Plan Administration Made Easy
The variability of the 401(k) plans can make it hard for business owners to maximize the employee and employer benefits of a 401(k) plan. At Certified Advisors, our CFP® professionals know the important key attributes of 401(k) plans and will help you get the maximum key benefits of your plan. As your 401(k) administrators we will collaborate with you at each step of the process. Starting from an initial assessment of your business’s retirement plan and current needs to choosing the most suited plan features and taking on the fiduciary responsibilities for your plan’s investment lineup and staying on top of the regularly changing regulations.
Our team of registered CFP® and CPA professionals has an in-depth understanding of retirement strategies, investment options, regulatory policies, and fiduciary responsibilities and liabilities that will help you create and execute a dynamic plan to provide optimal benefits and value to your employees. We make sure to work closely with you to develop and maintain a plan that meets your business’ and employees needs.
A 401(k) plan is a retirement savings plan with great tax advantages where contributions are automatically withdrawn from the paychecks and invested in an individual account under the chosen 401(k) plan. However, there are strings attached. There are a variety of complex laws that regulate a 401(k) plan and are changing regularly. 401(k) plans are not created equal. A Certified Advisors 401(k) administrator has intensive knowledge of 401(k) plans and pays attention to changes to keep everyone out of trouble.
Overview
Choosing The Right 401k Plan For You
Each 401(k) plan is built to fit every individual’s preferences and needs. Each of these plans is governed by different rules and different benefits in terms of flexibility, contribution limits, and more. Offering a 401(k) plan is like taking on fiduciary responsibilities. Certified Advisors administrators will manage fiduciary liabilities to make sure you meet your responsibilities while making sure you get the best of it.
Traditional 401(k) plans – The traditional plan is an employer-sponsored retirement plan and a common choice among employers. Under a traditional plan, the contributions of employees are deducted from their wages before taxes. Some employers match a portion of the employees’ contributions to provide benefits to their employees. In addition, the income taxes on the employer and employee contributions are tax-deferred.
The IRS requires employers to perform and pass annual tests, known as the Actual Deferral Percentage (ADP) and Actual Contribution Percentage (ACP) tests. This way, it ensures that the contributions don’t just benefit highly compensated employees.
Safe harbor 401(k) plans – The safe harbor plan is a special 401(k) plan that provides automatic passes to employers with the non-discrimination tests by the IRS. Meaning, employers don’t have to pass an ADP and ACP test each year. The safe harbor 401(k) plan is also popular with small businesses because of the money-saving and time-saving benefits from the yearly non-discrimination tests.
SIMPLE 401(k) plans – The simple 401(k) plan is an effective, and cost-efficient version of the traditional 401(k) plan combined with the simplicity of a simple IRA. This plan is available to employers with employees not more than 100. Employees who are under the simple 401(k) plan may not receive any contributions or benefit accruals under any other plans of the employer.
Solo 401(k) plans – Also called an individual 401(k) or self-employed 401(k), this plan is specifically intended for business owners or self-employed individuals with no employees aside from their spouse or business partners. This allows the participant to add contributions as both an employer and an employee.
Roth 401(k) plans – The Roth 401(k) plan is very similar to the traditional, but only differs in its tax procedures. Employees’ contributions under the Roth plan are not tax-deferred but are made with after-tax dollars.
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