Retirement Plans

Magnuson McHugh Dougherty CPAs » Retirement Plans

A well designed qualified retirement plan can be an integral asset to running a successful business. Whether you are an owner of a corporation or self-employed, we can design a plan that fits your business needs.

Come join us today, and have hassle-free retirement planning.

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Choosing a Retirement Plan

We offer the services you need to simplify the management of your company retirement plan, maintain compliance, achieve tax benefits and provide a meaningful retirement benefit for you and your employees.

The experience and expertise of our local professional staff ensures that our clients’ retirement plans operate in compliance with IRS and DOL rules and regulations, and that the plan’s design remains appropriate to the employer’s changing needs.

401(k) Plan Types of Contributions Available:

We offer plan design, document preparation and ongoing administration services for the following types of plans:

401(k) Elective Deferrals

Employees and owners contribute a portion of their compensation through payroll. These contributions can be made on a pre-tax basis (traditional 401(k) contribution) or after-tax basis (Roth contribution).

Employer Matching Contribution

The employer can match a percentage of the elective deferrals made by the participants. The match can be discretionary or classified as a “Safe Harbor Match”. The Safe Harbor Match allows the plan to forgo some of the annual compliance testing.

Safe Harbor Non-Elective Contribution

The employer contributes 3% of compensation for every participant. This allows the plan to forgo some of the annual compliance testing.

Employer Profit Sharing Contribution

The employer can elect to make a profit sharing contribution that is allocated to participants regardless of whether or not they make 401(k) elective deferrals. Despite the name, this contribution is not actually based on the company’s profits.

There are 3 major contribution options:

  • Pro-rata – a uniform contribution percentage to participants
  • Integrated – provides a greater allocation to those who earn in excess of the Social Security Taxable Wage Base
  • New Comparability (Cross Tested) – permits different allocation rates for each participant, provided nondiscrimination testing is passed

Profit Sharing Plan

Only employer contributions are made to this type of plan. The contribution is discretionary each year.

Money Purchase Plan

The employer is required to contribute to the plan each year. The plan document states the required contribution percentage.

Retirement Plan Advantages

What are some of the advantages of offering a qualified retirement plan at your company?

  • Attract and retain skilled and dedicated employees
  • Tax benefits to the company, owners, and employees
  • Contributions and investment gains are not taxed until distribution
  • More flexibility and higher contribution limits than Simplified Employee Pension Plans (SEP) and SIMPLE IRA’s
  • Provide meaningful retirement income for you and your employees

Our Services

Our Third Party Administration (TPA) services include, but are not limited to, the following:

  • Customized retirement plan design and new plan installation
  • Review of existing retirement plan design and coordinate takeover services
  • Preparation of plan documents, amendments and attention to ongoing legislative/regulatory updates
  • Preparation of required employee notifications and disclosures
  • Coordination of services with the investment platform company, your investment advisor and human resources
  • Determination of participant eligibility
  • Calculate employer contributions
  • Trust Accounting
  • Compliance testing to demonstrate satisfaction of IRS Nondiscrimination and Coverage requirements and annual contribution limitations
  • Preparation of comprehensive year-end reports and individual participant statements
  • Calculation of vested and forfeited benefits
  • Preparation and electronic filing of Form 5500 and related Schedules
  • Preparation of of Forms 1099-R, 1096, 945, 8955-SSA, 5558
  • Processing of participant distributions (terminations, in-service, hardship, death, disability, age 70½)
  • Processing of participant loans
  • Qualified Domestic Relations Orders (QDROs)
  • Audit Support

We will work with your existing investment advisor, accountant, payroll provider, and other advisors to ensure your retirement plan design and ongoing administration operates efficiently and in line with your goals. If you do not already work with one of these professionals, we can provide you with referrals.

Ready to Talk with Us?

 

Ready to talk with one of our North Idaho tax experts and see how we can help? Click here to contact any one of our trusted professionals or call us at 208.765.9500.

 

OUR RETIREMENT PLAN SPECIALISTS

Mary Cooper

Manager-Retirement