Meet Judy, Lawyer
Saving for her future retirement has always been important to Judy, and as a small business owner operating an independent law firm in New York, she wants her employees to be as financially prepared for the future as she is. Judy has spread out her retirement savings among several different accounts including Roth and Traditional IRAs, 401(k) plans offered to her through previous employers, and her Health Savings Account. She decided she wanted to offer an employer-sponsored 401(k) through her own small business as a way to retain quality employees, take advantage of tax deductions for the business, and help her employees feel more financially secure about their futures.
She looked for a 401(k) service that allowed her to craft a plan that fits her small business’s—and her employees’—needs. She was interested in a complex plan design with Safe Harbor provisions and automatic enrollment. Judy decided to go with a CoPilot Prime 401(k) plan. Her financial advisor helps with plan enrollment and questions, and the CoPilot Prime service offers a great supplement to her advisor, with additional plan sponsor and participant support already built in. Additionally, automatic enrollment encourages employee participation in the plan as soon as they are eligible. It simplifies the enrollment process and encourages steady savings habits for participants. This supports Judy’s hopes of having her employees prepared for retirement like she is.
Judy selected to utilize New Comparability Profit Sharing within her plan based on compensation factors. This allows highly compensated employees and non-highly compensated employees to be put into different groups to receive differing levels of contributions. Judy learned that New Comparability contributions are subject to a complex set of non-discrimination testing, and if passed, creates an opportunity for highly compensated employees and owners (like herself and her firm partners) to receive a larger contribution.
Many small business owners can relate to Judy’s goals, attitudes, and challenges when it comes to running her small business while also helping her employees save for the future.
Click the + below to learn more about Judy’s small business:
To learn more about choosing the right plan for your small business and explore our CoPilot plan options, check out the Retirement Plans Flowchart tool.
CoPilot Prime 401(k)
Operating a group retirement plan can be a lot of work, and Judy doesn’t have time in the day to adequately monitor plan performance and participant outcomes. That’s why CoPilot Prime is a great fit for her as a plan sponsor; it was designed to help relieve some plan administration duties and reduce fiduciary risk, all while helping employees reach their retirement goals.
Sometimes small businesses face unique challenges when it comes to their retirement plan, like passing required non-discrimination testing. That’s why Judy chose a Safe Harbor provision that’s designed to automatically satisfy specific non-discrimination tests, limiting the contribution restrictions often imposed on owners and top-tier employees.
Judy’s plan design allows for profit sharing contributions each year. This resource breaks down the New Comparability profit sharing method, which offers the greatest flexibility and is structured to maximize profit sharing contributions for owners or other senior highly compensated employees.
Connect with us!
|
CoPilot recordkeeping services include Years of Retirement calculations and savings alerts. Services for CoPilot are provided by Plan Administrators, Inc. (PAi), an Ascensus company. The Years of Retirement resource is for illustrative purposes only and is not, in any way, a guarantee of future results. CoPilot Prime is a suite of services provided by Plan Administrators, Inc. and PAi Trust Company, Inc. (PAi), which are Ascensus companies. CoPilot recordkeeping services include Years of Retirement calculations and savings alerts and are provided by PAi. Investment fiduciary services for CoPilot Prime are provided by PAi Trust, which is an affiliated business entity to PAi under common control and ownership interest. Services for CoPilot Prime Pooled Employer Plan are provided by PAi Trust Company, Inc., an Ascensus company. 401(k) plans are: Not FDIC insured | Not bank guaranteed | May lose value CoPilot IRA is a retirement service and is not an independent entity. Services for CoPilot IRA, including Years of Retirement and savings alerts, are provided by and through PAi Trust Company, Inc., an Ascensus company. PAi Trust Company does not provide any tax, legal, or investment advice. Individual Retirement Accounts are: Not FDIC insured | Not bank guaranteed | May lose value |