We know that choosing a retirement plan can be complicated, especially if you’re the first member of your family to open a 401(k) for yourself. Some employees choose to invest in a 401(k) so that they are less tempted to spend each paycheck; these types of retirement plans allow employees to defer some of their salary—which goes into a 401(k) plan sponsored by their employer. 

If you establish a 401(k) plan, you:

  • Can have other retirement plans.
  • Can be a business of any size.
  • Need to annually file a Form 5500.

It might also be helpful to know that 401(k) plans can be modified by you to meet your needs: these plans can be as simple or as complex as you need them to be. 

Pros and Cons:

  • Greater flexibility in contributions.
  • Employees may contribute more to this plan than under IRA plans.
  • Good plan if cash flow is an issue.
  • Optional participant loans and hardship withdrawals add flexibility for employees.
  • Administrative costs may be higher than under more basic arrangements.
  • Need to test that benefits do not discriminate in favor of the highly compensated employees. This testing can be complicated.
  • Additional withdrawal and loan flexibility adds administrative burden for the employer.

We are more than capable of helping you make decisions about your retirement plan. For more information, visit the IRS’s 401(k) resource guide.

At Keel and Long, we use our combined experience of nearly 20 years to help you reach your financial goals. We specialize in portfolio management, 401k plan services, and financial planning in general. If you’re ready to set up your financial future with us, contact us as soon as possible. 

We put together a team that can help you through the process of establishing the right 401k for your company. We analyze your needs as a business owner and develop a plan based on fiduciary responsibility, uncovering hidden fees and expenses, and the selection of a fund line up to help you reach your goals.

For high-income business owners, we also seek ways to optimize your 401k through various tools like Cash Balance Plans that allow you to invest significant amounts of money in a tax-deferred vehicle.