Do you or your clients have a SIMPLE IRA but could benefit from establishing a 401(k) plan? There is still time left to make the change from offering a SIMPLE IRA to a 401(k) this year! Employers must notify employees before November 2, 2018 that 2018 is the final year they are offering the SIMPLE IRA and that it will be replaced with a 401(k) plan.
401(k) Plan Advantages
Exclude Certain Classifications of Employees: As long as the plan passes the required coverage and nondiscrimination testing, there is flexibility to exclude certain classes of employees.
Availability of Loans: Participant loans can be included as a feature in a 401(k) plan.
Larger Contributions: A 401(k) plan offers larger contribution amounts for employee deferrals, catch up contributions, and the opportunity to include a profit sharing contribution from the employer.
Favor Owners and Key Employees: Implementing a cross-tested 401(k) plan may favor owners and key employees, especially if they are older than the general working population.
Easy Implementation: The experienced team at Watkins Ross helps our clients implement new 401(k) plans with ease and confidence. We consult with clients to ensure the plan is designed to meet their goals.
Contact Sheila Freund or David Bosch to learn more about switching from a SIMPLE IRA to a 401(k) plan.