You work hard to get ahead. Your retirement program should do the same.
It’s your professional instinct to work diligently to fulfill your vision of retirement — whatever that looks like to you. However, when it comes to having the right retirement program for your situation, you may be unaware of plan options that could benefit you. In fact, with some of the plans discussed here, you may be able to contribute higher amounts for yourself, while maintaining a plan you can afford and easily manage for your employees.
Whether you want to improve or start a retirement plan, a retirement program specialist is available to help you.
Established practices with younger employees may be able to maximize contributions for maturing owners.
An Owners 401(k) combines the benefits of a profit-sharing plan and a traditional 401(k) without costly setup charges. With an Owners 401(k), one-person businesses may be able to defer more income than they would with SEP IRAs or SIMPLE 401(k)s, profit sharing plans, Keoghs or other defined contribution plans. Rather than a fixed contribution limit, as is common with many other plans, the Owners 401(k) contribution limits are based on a percentage of income. Plus, by allowing for a profit-sharing contribution as well as a salary deferral, contribution limits could be up to three times as much as those allowed under other types of retirement plans.
One-person businesses can establish or switch to an affordable owner’s 401(k).
An Owners 401(k) combines the benefits of a profit-sharing plan and a traditional 401(k) without costly setup charges. With an Owners 401(k), one-person businesses may be able to defer more income than they would with SEP IRAs or SIMPLE 401(k)s, profit sharing plans, Keoghs or other defined contribution plans. Rather than a fixed contribution limit, as is common with many other plans, the Owners 401(k) contribution limits are based on a percentage of income. Plus, by allowing for a profit-sharing contribution as well as a salary deferral, contribution limits could be up to three times as much as those allowed under other types of retirement plans.
Owners can defer more with a safe harbor 401(k), regardless of employee participation levels.
With a salary deferral up to $20,500 for 2022 (an additional $6,500 if you are age 50 or older), plus the ability to contribute to a separate profit-sharing plan, the Safe Harbor 401(k) is an option that offers significant contribution flexibility. And, because owners may defer the maximum allowable contribution for themselves regardless of employee participation, the Safe Harbor 401(k) has become a attractive plan for highly compensated business owners with employees.
Save time and simplify by consolidating your retirement plans.
If owning multiple retirement plans such as IRAs, Rollover IRAs, 401(k)s, profit sharing and 403(b) accounts isn’t getting the job done, maybe it’s time to consolidate your plans. By merging your other plans into a single 401(k) through the Members Retirement Program, you may be able to simplify investment management, save time, reduce fees and be a more effective, informed investor while remaining diversified. Additionally, by consolidating your assets into the Members Retirement Program, you may have access to loan features and other benefits not available with IRAs.
Get help from an experienced retirement program specialist.
The Members Retirement Program makes it easy for you to figure out which plan might be the best fit for you today. Start by speaking with a retirement program specialist, who will evaluate your situation and your current holdings, and provide plan alternatives that make sense for you.
This is only a brief overview. Please refer to one of our brochures or our website for full information about policy plan design, limitations, exclusion, state approvals and other information.
Health benefit plans are available only to AFE members. If you're already a member, please contact us to request more information.