Broker Check

Running a business is hard.  We simplify your retirement plan and show you how to maximize the tax savings available to you.

At Applied Asset Management, our technical knowledge of retirement plans allows us to address plan design issues, perform plan and cost analyses, and present custom strategies designed to fit your personal and business objectives. Covering the full spectrum of retirement plans, we help you determine an appropriate solution for your business, whether that is a 401(k), 403(b), SEP IRA, Simple IRA, defined benefit plan or profit sharing plan. Our advisors have obtained the Pension Plan Consultant (PPC) designation which demonstrates our knowledge of ERISA requirements for employer-sponsored retirement plans and show the ability to carry out plan services with a fiduciary standard of care.

Case Study 1:

Client A owns a S-Corporation with 25 employees who came to us looking to reduce their tax liabilities and improve the retirement plan benefits for their employees. This client currently offered a Simple IRA plan , which limited the amount both the employees and employer could contribute to just $13,000 per year.

After our initial consultation, we found that the business owner and spouse were receiving nearly $900,000 per year in K-1 distributions resulting in a significant personal tax liability. We recommended terminating the Simple IRA plan and implementing a 401k retirement plan with profit sharing to help maximize owner contributions and tax deferment. We also recommended that Client A offer a defined benefit plan which allowed them to defer another $236,000 per year in retirement savings. All told, client was able to reduce their K-1 distributions from $900,000 to approximately $550,000 resulting in an approximate tax savings of $130,000 per year.

Case Study 2:

Client B is a sole proprietor working in a service industry who was referred to us by another client. Client B’s gross revenues from their business were approximately $200,000 per year with a net business income of around $160,000. Client is married with 3 children and had been contributing to a SEP IRA per the recommendation of his accountant.

After reviewing his tax returns and overall financial picture, we recommended client stop contributing to his SEP IRA and instead open a Solo 401k account which would allow him to contribute up to $56,000 per year (combined 401k contribution plus profit share) versus his previous amount of $40,000 in his SEP. Because SEP plans cap contribution limits to 25% of income ($160,000 x 25%) client was able to save an additional $16,000 per year pre-tax in a solo 401k vs a SEP-IRA.

*These results are for illustrative purposes only and should not be deemed a representation of future results. Circumstances, solutions, and/or results are based on specific facts tied to unique client situations. Favorable results cannot be guaranteed even in a similar scenario. Each specific set of circumstances will differ depending on client needs and profile. Actual results may be more or may be less than those shown. Past performance does not guarantee future results. This assessment is that of the writer, and not the recommendations or responsibility of Cetera Advisor Networks LLC or its representatives.

$19,000 – Salary Deferrals
$6,000 – Catch Up

$25,000 Total

Roth & Loan Features
1yr, 1,000hrs, 21 yrs old

Discretionary Match

6 Year Graded Vesting

Safe Harbor NEC 3%

Safe Harbor Match 4%

100% Vested

$56,000 Contribution Limit

2%-4.5% to Employees

6 Year Graded Vesting

3 Year Cliff Vesting

Our services for Retirement plan sponsors include…

Plan Design

As part of our overall review, we’ll discuss your financial goals for your retirement plan and identify how much taxes you could save by better optimizing your plan. We will then implement those changes either with your current provider or if you desire we will request RFPs from a variety of retirement plan providers and help you select the best one.

Fiduciary Support

Liability is a significant concern for many business owners. Plan sponsors often struggle to address the challenges of regulatory and ERISA compliance, manage fiduciary risk, and adequately prepare participants for retirement. Offering 3(21) or 3(38) fiduciary liability coverage on most 401(k) plans, we seek to help you keep your plan in compliance with ever-changing regulations.

Plan Benchmarking

As the fiduciary of your retirement plan, it is required that you review the plan costs every three years. As part of our commitment to you, we automatically request RFPs from providers every three years and provide you with reports to show you where your plan stands in relation to other options. Maintaining proper filing of these records will help keep you compliant in case of a Department of Labor audit.

Plan Participant Education

We strive to help not only you but also your employees. In offering plan participant education, we aim to increase participation and deferral rates for your retirement plan. Beyond enrollment meetings, we offer ongoing educational meetings and one-on-one meetings for employees who need further financial planning advice.

Contact us to improve your retirement plan

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