401K/Simple/Cash Balance Plans

Your dedicated team of retirement plan experts

Have you been contacted by robo-advisors and other vendors offering cookie-cutter solutions? As a small business looking for cost reduction, this is the trap you can get into very easily when you do not really know what advisors do for your business retirement plans. Nearly 6 million businesses in the US have less than 100 employees. These businesses employ nearly 42 million people, or nearly 70% of all working Americans, but 90% of these businesses have no 401K plans. Nearly half of small businesses either do not know how business retirement plans work or are unsure which plan to choose.

Here is what the team of Foxman Asset Advisors does for a small business client:

- Assists with plan design based on employee demographics and business owner’s priorities;
- Coordinates all parties – third-party administrators, a platform, a CPA, and payroll processing;
- Sets up and monitors investment choices available based on needs and circumstances;
- Assists with employee education;
- Assists with either full integration with payroll platform or manual entry from payroll reports;
- Provides support at year-end during the period of reporting.

Foxman Asset Advisors provides unparalleled service to ensure that business retirement plans serve the purpose of minimizing tax liabilities for the business owners and their employees as well as helping companies with employee recruitment and retention.

A 401(k) Plan is an employer-sponsored retirement account which allows employees to save a part of their salary before taxes. Employers may or may not offer a matching contribution. The money earned in a 401(k) Plan is not taxed until employees withdraw money from this account after they are retired. At this time their income will typically be lower than during their working years making the tax burden also lower.

Foxman Asset Advisors work with various partners to ensure that plan administration and investment platform provides:

- cost effectiveness
- rich selection of investment choices
- outstanding customer service

Simple (Savings Incentive Match PLan for Employees) IRA business retirement plans are excellent for employers with fewer than 100 employees who are looking to offer up to 3% employer match with immediate vesting and lower employee contribution limits as compared with a 401K plan. Its simplified annual reporting makes it by far a more compelling option for smaller employers from the cost perspective.

Defined Benefit and Cash Balance Plans

Defined benefit plans provide a fixed, pre-established benefit for employees at retirement. These plans allow for a total annual contribution to max out at amounts in excess of $200,000 a year. The formula for these plans takes into account the age and income of both the owners and employees and works especially well for companies with small number of employees and high disparity between ages and incomes such as medical, law, and other professional service firms with owners 5-10 years away from retirement. These plans are more complex and therefore cost more to administer.