If you’re a business owner, figuring out the right retirement plan for you and your employees can seem like a daunting task. The first decision is to determine if you want a defined contribution plan or a defined benefit plan and then from there the number of options continues to grow. In today’s Money Checkup, I’ve invited Neil Shore to join me on the show to take a deep dive into these options and provide you insight on what may work for you and your business. Tune in to not only find out about the various retirement plan options, but also understanding the tax implications for each type of plan.
Neil Shore, ASA, EA and Kathy Tompkins founded Shore Tompkins in 2004 to be a leading, creative, high-touch retirement consulting firm, exclusively focused on strategic consulting, design and administration for all major types of retirement and pension plans. Neil has 33 years of actuarial and benefit consulting experience, specializing in pension plan design, consulting and actuarial services. Neil is an Associate of the Society of Actuaries, an Enrolled Actuary and a member of the American Academy of Actuaries and holds a bachelor’s degree in Actuarial Science from the University of Illinois.
What We Will Cover
- How Shore Tompkins started and evolved into what it is today
- The different types of plans Shore Tompkins offers
- Learning how to put more money away as a small business owner
- Some of the common retirement plans for small businesses
- The ins and outs of a SIMPLE IRA
- The different contribution limits for a SIMPLE IRA and a SEP IRA
- The two big advantages of a 401k profit sharing plan
- What the 5500 IRS filing is for and how often you need to do it
- Breaking down a defined benefit plan
- Comparing and contrasting the defined benefit and defined contribution plans
- The business owner’s big advantage with a defined benefit plan
- How age plays a part in the amount you can put into a defined benefit plan each year
- A good risk tolerance for business owners with a defined benefit plan
- How control groups can affect retirement plan designs
- How to prove your plan is nondiscriminatory
- How to determine a retirement plan as an owner in multiple companies
- How retirement plans and Qualified Business Income (“QBI”) deductions intertwine
- QBI deduction income limitations
- How to utilize the QBI deduction to your advantage through a retirement plan
A Financial Goal in the Works
- Be financially independent and leave money to his heirs.
One Piece of Financial Advice
- You should always be living well below your means.
Getting Connected With Neil
Links We Mentioned
Money Checkup QBI podcast (episode 4)
Click here if you want to read the transcript instead!