Articles

• Mega Backdoor Roth with ERISA 401(k) Plans

  Most plans that are not owner-run, such as those offered by hospitals, universities, and other large employers don't allow the option for doing Mega Backdoor Roth conversions, but a smaller partner-run practice plan can easily adopt any changes necessary to implement the mega backdoor Roth 401(k) strategy. Read on

• How To Reduce Your Practice Retirement Plan Cost

  It is well-known that the majority of retirement plan providers that serve the small and mid-sized retirement plans are bundled platforms that make most of their money via asset-based fees. Many plan providers do not offer the best available solutions to small solo and group practice plans, and this often means sub-par plan design and lack of any fiduciary or compliance services, which leads to higher plan cost and can potentially result in unnecessary expenses later on. Even those providers who are open-architecture tend to charge significantly higher fees for small solo and group practice plans relative to what the larger plans pay for the same services. However, it is definitely possible to get the best available plan services at a lower cost. Read on

• What Is The Best Plan For My Practice, 401(k) Or SIMPLE IRA?

  One of the biggest retirement plan questions for small practice owners is whether to set up a SIMPLE IRA or a 401(k) as their first retirement plan. Often, practice owners opt for a SIMPLE IRA only because there are no administrative costs associated with operating this plan. In some cases this can be a big mistake, especially if you have the ability to contribute significantly more to a 401(k) plan. Read on

• Long Term Cost of Retirement Plan Asset-based Fees

  Many bundled 401(k) plans offered to small practices can have very high fees, which include mutual fund fees and other asset-based fees. Fees average about 1.5% but at the high end of the spectrum fees can be as high as 4%. These AUM (assets under management) fees always grow as your account grows. The compounded cost of these fees can reach into hundreds of thousands of dollars for a typical 401(k) account. Read on

• Hiring a Fiduciary Adviser for Your Retirement Plan

  While fiduciary liability is an important consideration, the primary reason to hire a fiduciary who will act in your best interest is to help you minimize your plan expenses and assist you in managing your plan investments. Read on

• How to Run a Successful Retirement Plan: A Guide for Medical and Dental Practices

  Whether you have an existing plan, looking to open a new plan or upgrade the plan you already have, there are four things you need to consider that can significantly improve the quality of your plan: having the right plan design, minimizing plan cost, managing your fiduciary liability as a plan sponsor and selecting the right plan services that can both minimize your fiduciary liability and help plan participants achieve better investment results. Read on

• What CPAs Must Know Before Recommending 401k Plans to Clients

  By using 401k plans, many small business owners can save money on taxes while providing themselves and their employees with a way to save for retirement. In the past decade 401k plans have earned a bad reputation which is totally undeserved. The problem is that high fees, poor investment choices and lack of basic financial education on how to manage their investments led to massive losses which turned many people away from 401k plans. A properly designed plan can be used as a long-term savings and investment vehicle for the business owner and employees. Read on

• Long Term Cost of Investment Expenses

  Morningstar's director of mutual fund research, Russel Kinnel, reports in an August 9 article on Morningstar.com, How Expense Ratios and Star Ratings Predict Success: "In every single time period and data point tested, low-cost funds beat high-cost funds." Read on