Simple Plans are cheap!  That is why most employers use them. There are no filing or testing requirements, and little administrative costs.

Things change! As your business (and profits) grow and the needs of your team change, a SIMPLE may not fit as well as it once did. While a SIMPLE is a good alternative, it is limited in what it can do. A 401(k) may be a better alternative for a variety of reasons:

  1. MORE MONEY: A 401(k) allows participants to defer more money. The 2017 compensation limit for a SIMPLE is $12,500 (with a $3,000 catch-up if over 50). The limit for a 401(k) is $18,000 ($24,000 if over 50).
  2. ADVANTAGES TO OWNERS: Save more money with profit sharing and/or matching contributions. In a SIMPLE, the employer is required to contribute to the plan. In a 401(k) plan, there is no obligation for employer contributions. Different plan designs can be implemented to maximize contributions for owners and/or key employees allowing them to increase the contribution limit to $54,000–$60,000 for those over 50 years old.
  3. BETTER TAX SAVINGS: These are better with a 401(k) plan.  Greater contributions could mean thousands of dollars in taxes deferred until the funds come out.
  4. FLEXIBILITY: With a SIMPLE, the structure of plan design is limited. 401(k) plans provide a myriad of designs that can be tailored to match your specific needs.

DEADLINE NOVEMBER 2:  Employee notifications for SIMPLE Plans are due soon.  Now is the time if you are ready to make the change! Call us and we’ll walk you through the process every step of the way.  Learn more here.

For more  about the 401 (k) Shield click here.

Or contact:
David M. Wheat, ChFC. AIF
Accredited Investment Fiduciary
Holly Knight
Axiom Advisors, LLC.
[email protected]
800.769.1287 ext. 778

Securities offered through Cambridge Investment Research, Inc., a Broker/Dealer member FINRA/SIPC.  Investment Advisor Representative, Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor.  Financial Planning Services offered through Axiom Advisors, LLC, a Registered Investment Advisor.  Axiom Advisors, LLC and Cambridge Investment Research, Inc. are not affiliated.