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Choosing a Retirement Plan for the Self-Employed: Maximizing Contributions, Solo 401(k)s, SECURE Act

Recording of a 110-minute CPE webinar with Q&A

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Conducted on Thursday, January 26, 2023

Recorded event now available

This course will delve into the differences between different retirement plans, who is eligible to establish a plan, how plans can be combined to maximize savings, and the SECURE Act. Our retirement expert will provide a thorough explanation of the options available for businesses and self-employed individuals.

Description

Qualified retirement plans are effective financial-building, tax-deferral tools for business owners and employees. The ownership structure (individual, LLC, S corporation, etc.), number of employees, owner’s retirement goals, and each business’ unique characteristics are all considerations when choosing the most appropriate retirement savings vehicle for that employer.

A 401(k) plan allows taxpayers to set aside $22,500 (2023) in elective deferrals and an additional $7,500 (2023) if 50 or older. Plus, you can make profit-sharing contributions in addition to the deferral for a total contribution of $66,000 (2023) or $73,500 (2023) for those 50 or older. They allow for a mix of pre- and post-tax contributions and substantially higher contributions than your traditional IRAs. Solo 401(k) sponsors need to pay attention to the Long-Term Part Time Employee rules coming into effect in 2024.

Employers with substantial positive cash flow and a positive business outlook may want to consider coordinating a cash balance defined benefit with a 401(k) defined contribution plan. These are more complex but allow for even larger contributions.

Complicating the mix are the recent changes to retirement plans under the SECURE Act, as well as the possibility of what many are calling Secure 2.0.

Listen as our retirement plan expert reviews the numerous options available for future savings, including Simple IRAs, solo 401(k)s, defined benefit plans, profit-sharing plans, and the recent changes made impacting retirement withdrawals, including RMDs and hardship distributions.

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Outline

  1. The SECURE Act changes
  2. Self-employed retirement plan
  3. SIMPLE IRA
  4. Solo 401(k) or Roth 401(k)
  5. Defined benefit and defined contribution plans
  6. Roth conversions
  7. Safe Harbor or safe harbor?

Benefits

The panel will review these and other key issues:

  • Which taxpayers are eligible to establish a solo 401(k)?
  • What are the key differences between a solo 401(k) and one with rank and file employees?
  • How did the SECURE Act change retirement plans?
  • When should an employer consider adding a Cash Balance Plan to the company’s retirement program?

Faculty

Tipper, Christopher
Christopher W. Tipper
Founder and CEO
Hunter Benefits Consulting Group

Mr. Tipper began his career in retirement benefits in 1990, founding Hunter Benefits in 1999 and quickly rising to...  |  Read More