Table of Contents
Introduction
First things First: Define Your Objectives
Chapter 1 - Picking a Plan Design
What are my options?
Do I have different options if I am self-employed?
Can I sponsor a plan if I don't have any employees?
What are my options if I don’t have any employees?
Which plans are the easiest to administer?
Which plans help attract and retain employees?
Which plans let me shelter the most income?
What are the contribution limits?
Which plans let me decide each year how much I want to contribute?
What is the "money purchase" plan?
Which plan designs let me provide richer benefits for management?
What is a "non-qualified" retirement plan?
Chapter 2 – Setting Up the Plan…
What is the first step I need to take to set up a retirement plan?
What decisions should I be prepared to make?
Can I exclude any employees from eligibility?
I own more than one business. Do I have to cover all of my employees in the plan?
Do I need to include bonus pay when I calculate contributions?
What are the vesting schedule options?
What distribution choices can I offer?
Is there any special insurance I need to have?
Chapter 3 - Investing Plan Assets
Do I need to set up a trust?
Who can serve as trustee?
How are retirement plan assets invested?
What liability exposure do I have if I make investment decisions?
What liability exposure do I have if my employees direct their investments?
Can retirement plan assets be invested in real estate?
What is a “prohibited transaction”?
Chapter 4 - Tax Matters
How will contributions to the plan affect my personal income taxes?
What about employment taxes?
Is there a limit on tax-deductible contributions to the plan?
When must contributions be made to be currently deductible?
What happens if excess contributions are made to the plan?
How are plan distributions taxed?
How do I report distributions from the plan to the IRS?
Chapter 5 - Day to Day Administration
What information do I need to file with government agencies each year?
Do I need to have the plan audited each year?
What is a “determination letter” and do I need one?
What documents do I need to give my employees?
Can I or my employees borrow from the plan?
When can employees have access to their retirement benefits?
When are in-service distributions permitted?
What happens if an employee gets divorced?
What happens if an employee dies?
What happens if an employee has a dispute about his or her plan benefit?
Chapter 6 - Tests You Need to Pass
What are the annual testing requirements?
Who is classified as “highly compensated”?
What happens if the plan fails a test?
What is a “top heavy” plan?
What happens if the plan is top heavy?
Who performs the tests?
Are there any ways to avoid the testing requirements?
Chapter 7 - Common Compliance Issues
What are the most common compliance mistakes?
How do I correct a compliance problem?
What types of penalties may be imposed?
Can I be held personally liable for any violations?
Chapter 8 – Terminating Your Plan
Can I terminate the plan at any time?
How do I terminate the plan?
When do I need to tell employees that the plan will terminate?
What happens to the benefits of plan participants when the plan terminates?
Do I need to file anything with government agencies when the plan terminates?
What happens to the plan if I sell my business?
What happens to the plan if I sell or shut down a division or subsidiary of my business?
What happens to the plan if my business fails or files for bankruptcy protection?
Chapter 9 – Parting Words
Do I need a lawyer?
This is all more complex than I anticipated. Is it worth it?
Resources
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