A well designed qualified retirement plan can be an integral asset to running a successful business. Whether you are an owner of a corporation or self-employed, we can design a plan that fits your business needs. We offer the services you need to simplify the management of your company retirement plan, maintain compliance, achieve tax benefits and provide a meaningful retirement benefit for you and your employees.
The experience and expertise of our local professional staff ensures that our clients’ retirement plans operate in compliance with IRS and DOL rules and regulations, and that the plan’s design remains appropriate to the employer’s changing needs.
Choosing a Retirement Plan
We offer plan design, document preparation and ongoing administration services for the following types of plans:
Types of contributions available:
401(k) Elective Deferrals: Employees and owners contribute a portion of their compensation through payroll. These contributions can be made on a pre-tax basis (traditional 401(k) contribution) or after-tax basis (Roth contribution).
Employer Matching Contribution: The employer can match a percentage of the elective deferrals made by the participants. The match can be discretionary or classified as a “Safe Harbor Match”. The Safe Harbor Match allows the plan to forgo some of the annual compliance testing.
Safe Harbor Non-Elective Contribution: The employer contributes 3% of compensation for every participant. This allows the plan to forgo some of the annual compliance testing.
Employer Profit Sharing Contribution: The employer can elect to make a profit sharing contribution that is allocated to participants regardless of whether or not they make 401(k) elective deferrals. Despite the name, this contribution is not actually based on the company’s profits.
There are 3 major contribution options:
- Pro-rata – a uniform contribution percentage to participants
- Integrated – provides a greater allocation to those who earn in excess of the Social Security Taxable Wage Base
- New Comparability (Cross Tested) – permits different allocation rates for each participant, provided nondiscrimination testing is passed
Profit Sharing Plan
Only employer contributions are made to this type of plan. The contribution is discretionary each year.
Money Purchase Plan
The employer is required to contribute to the plan each year. The plan document states the required contribution percentage.
Retirement Plan Advantages
What are some of the advantages of offering a qualified retirement plan at your company?
- Attract and retain skilled and dedicated employees
- Tax benefits to the company, owners, and employees
- Contributions and investment gains are not taxed until distribution
- More flexibility and higher contribution limits than Simplified Employee Pension Plans (SEP) and SIMPLE IRA’s
- Provide meaningful retirement income for you and your employees
Our Third Party Administration (TPA) services include, but are not limited to, the following:
- Customized retirement plan design and new plan installation
- Review of existing retirement plan design and coordinate takeover services
- Preparation of plan documents, amendments and attention to ongoing legislative/regulatory updates
- Preparation of required employee notifications and disclosures
- Coordination of services with the investment platform company, your investment advisor and human resources
- Determination of participant eligibility
- Calculate employer contributions
- Trust Accounting
- Compliance testing to demonstrate satisfaction of IRS Nondiscrimination and Coverage requirements and annual contribution limitations
- Preparation of comprehensive year-end reports and individual participant statements
- Calculation of vested and forfeited benefits
- Preparation and electronic filing of Form 5500 and related Schedules
- Preparation of of Forms 1099-R, 1096, 945, 8955-SSA, 5558
- Processing of participant distributions (terminations, in-service, hardship, death, disability, age 70½)
- Processing of participant loans
- Qualified Domestic Relations Orders (QDROs)
- Audit Support
We will work with your existing investment advisor, accountant, payroll provider, and other advisors to ensure your retirement plan design and ongoing administration operates efficiently and in line with your goals. If you do not already work with one of these professionals, we can provide you with referrals.
Are you ready to help your employees start planning for their future? Contact one of our local Coeur d’Alene and North Idaho retirement specialists today. We can discuss establishing a new retirement plan or even provide a review of your existing plan. Our fees are competitive and available upon request. Click below or call 208.765.9500.
RETIREMENT PLAN SPECIALISTS
Michelle Schini Haneline, CPA
Michelle is a third generation Coeur d’Alene resident and proudly serves as President of Magnuson, McHugh & Company. She graduated from the University of Arizona in 1990, and joined Magnuson, McHugh & Company in 1995. Her current areas of focus include individual and business taxation as well as developing a practice in medical, dental consulting and business valuations. Michelle also has nearly 20 years’ experience in governmental accounting and auditing.
She currently serves as Treasurer of the North Idaho College Foundation. In her free time, she enjoys golfing, snow skiing, traveling and spending time with her husband and children.
Manager, Retirement Plan Services
Mary became part of the Magnuson McHugh family in December of 2016. She’s a proud graduate of Gonzaga University with a Business Degree in Accounting. Prior to coming to MM&CO, she was a Retirement Plan Administrator for 26 years with Powers Stromberg Pension Consulting, Inc. in Spokane.
She has achieved the designation of Accredited Pension Administrator (APA) and is a member of the Gonzaga Prep Finance Committee.