Installing a Retirement or 401(k) Plan? - We Can Help

You know the importance of long-term retirement planning. Your future Ñ and that of your employees Ñ depends on it. What you may not know is how much your company can benefit from establishing the right retirement plan. Whether you are a small businessman with less than 10 employees, or a larger company with 500 - 1,000 plus employees, you could have the same organizations managing your retirement plan assets that manage money for many Fortune 500 companies. We recommend such companies to our clients every day. The companies we recommend may be especially well-suited for your retirement plan because they offer:

• all-in-one retirement plan packages, including recordkeeping, trust services and a choice of up to 22 investment options
• a commitment to low management fees
• a value-oriented investment style focused on long-term holdings
• a unique method of portfolio management that combines the best attributes of single-manager and committee-management systems

With the vast array of options available to employers it is most important to choose the right plan for your company. The right plan can:

• attract and retain quality employees. As more people worry about saving enough for retirement, company-sponsored retirement plans are becoming an important consideration in their employment decisions.
• Let the government pay part of your costs. The money you spend to set up the plan and contribute to your employees' accounts is tax-deductible.

As an employer who is thinking about installing a new 401(k) or defined benefit pension Plan, you may have concerns about meeting your fiduciary obligations under ERISA and IRC 404(c), among other things. This is where a competent CFP® Certificant can assist you in understanding just what exactly your duties and responsibilities are and how full compliance can be achieved. Our firm will work with your HR dept. (or the owner personally in the case of smaller firms) to take the load off you. After gathering sufficient information, we will develop and present a written proposal showing the benefits of a 401(k) plan for you and your employees, provide all the necessary compliance tools and mechanisms, as well as extensive documentation regarding the investment option choices for your employees. Our desire is to simplify the entire process so that you can run your business, instead of learning ours.

If you are an employer that has already installed a 401(k) or other retirement plan in the past you may have questions based on recent tax law changes. For example; Does your 401(k) plan struggle to pass its nondiscrimination tests? Are you forced to limit the amount highly paid employees may contribute Ñ or even refund part of their contributions? Now, if you answered yes to either question, you'll want to learn more about the safe harbor options available to 401(k) plans. Here are a few highlights:

• Nondiscrimination tests are not required if you make the necessary contribution and provide annual notice.
• In years when you want to contribute more than required, you can.
• You have fewer responsibilities than you would have with a regular 401(k).

You can even add these safe harbor options to your existing 401(k) plan. We would be pleased to describe how these safe harbor options could benefit your existing plan. We will also run a comparison with your existing plan to ascertain whether a change of investment options featuring lower expense ratios and a unique method of portfolio management could benefit you and your employees. There are hundreds of thousands of plans in America and not a small percentage of these plans still utilize "full load" investment options with high annual expense ratios. This drags down performance over time and enriches only the investment companies offering these fully loaded plans. As a fiduciary, the employer has a duty under IRC 404(c) to review these investment options from time to time to ensure that, among other things, the employee's best interests are being served by a continuation of the plan's investment options. Lower expense ratios and a strong investment management team with a proven track record may bring significant new benefits to your employees and help you to attract and retain good employees.

If you are interested in having us develop a proposal for your company retirement plan, or, would like a comparison of expenses, fees and other factors that influence the purchase and exchange of a 401(k), money purchase or defined benefit Plan, please contact us.

Nigel B. Taylor, CFP¨ is a Registered Representative of and offers securities products & services through Royal Alliance Associates, Inc. Member FINRA/SIPC, a registered Broker-Dealer. In this regard, this communication is strictly intended for individuals residing in the states of California & Nevada. No offers may be made or accepted from any resident outside the specific state(s) referenced.

CFP®, CERTIFIED FINANCIAL PLANNER™ and the CFP® flame logo are federally registered services marks of the CFP board of Standards, Inc. CO.