Designing Best Retirement Plan for Closely Held Companies

Welcome to myCPE

Learning Objectives

To identify which plans can be designed to satisfy the business owners’ goals, usually to benefit them primarily and their key employees.
To explain which plan provisions and IRS guidelines assist in this goal and examples of several effective alternatives.
To discuss data points that are key to being successful in this endeavor.
To discuss a proven approach to choosing the “right plan” for your client that satisfies their goals.
To familiarize with the various plan types and the alternate designs for those plans, where they fit best, and specific examples of the results.

Course Description

This course is valid up to December 31st, 2024 for CFP Professionals. It is advisable to complete this course before that to process the credit on time.

In this course, we will discuss the different retirement plan design options that are suitable for small to mid-sized companies, with a focus on plans that provide benefits to owners and key employees.

Generally, in this scenario, the age and compensation of the owners and key employees have a significant impact on the choice of appropriate plans and plan design. As you will see in the various plan types and examples each plan type has a variety of options that would make that particular plan work for a specific plan sponsor.

There are multiple owners, each with different goals, in some cases, the owner is around the same age as the rank-and-file employees which would result in a different plan type and design. All of the available approaches have both advantages and disadvantages, all of which will be addressed. With many of the plan designs, there are mandatory non-discrimination rules that apply. The various tests required to illustrate the lack of discrimination by IRS and DOL rules will also be addressed with illustrations.

This CPE Finance webinar will conclude with a step-by-step approach to determine which plan type is best suited for a specific plan sponsor and identify the plans that best suit those sponsors. Keeping in mind there are no absolutes, i.e., some plan sponsors do not necessarily have one specific goal but possibly a combination of "let's benefit the owners and key employees but also the rank and file employees." I have been my experience after over 40 years of helping business owners set up a retirement plan that works for them and usually, there is more than one solution.

Key Topics Covered:

Profit Sharing Plan Coordinated with Social Security
Traditional Profit Sharing with Safe Harbor 401(k)
Class Allocation Profit Sharing Plan
Alternate Defined Contribution Plan Designs
Money Purchase Profit Sharing Combination
Target Benefit Plans
Defined Benefit Plan
Floor Offset Plan
Choosing The Right Plan

In this comprehensive webinar, we will delve into the key strategies and techniques that financial advisors can use to approach the function of creating customized financial plans for their clients, enabling them to achieve their financial goals and build long-term wealth.

Overview

Traditional profit sharing plan

3 mins
401(K) plan types

14 mins
Class allocation profit sharing plan

27 mins
Money purchase plans

40 mins
Choosing the right plan

83 mins

Webinar Qualifies For

2 CPE Credit of Finance for Certified Public Accountants (CPA-US)
2 General Credit of Finance for Accountant/Bookkeeper/Tax Professionals
2 CE Credit of Retirement Savings and Income Planning for Certified Financial Planner (CFP-US) (Approval No. 321356)
2 CPD Credit of Personal Financial Planning for Personal Financial Specialist (PFS)
2 PL Credit of Retirement Planning for Chartered Financial Analyst (CFA)
2 CE Credit of Retirement Planning for Chartered Financial Consultant (ChFC)
2 CE Credit of Financial aspects of estate and retirement planning for Certified Senior Advisor (CSA)
2 CPD Credit for Trust and Estate Practitioners (TEP)
2 CE Credit of Financial Planning for Certified Wealth Strategist (CWS)
2 CE Credit of Retirement Planning for Retirement Income Certified Professional (RICP)
2 CE Credit of Financial Planning for Certified Fiduciary and Investment Risk Specialist (CFIRS)
2 CE Credit of Retirement Planning for Financial Services Certified Professional (FSCP)
2 CE Credit of Retirement Planning for Wealth Management Certified Professional (WMCP)
2 CE Credit of Retirement Planning for Chartered Life Underwriter (CLU)
2 CE Credit of Retirement Planning for Chartered Advisor in Senior Living (CASL)
2 CPE Credit of Finance for Iowa Licensed Public Accountant (IA-LPA)
2 PL Credit of Retirement Planning for CIPM
2 CPE Credit of Finance for Maine Licensed Public Accountant (ME-LPA)
2 CE Credit of Retirement Planning for Chartered Special Needs Consultant (ChSNC)
2 CPE Credit of Finance for Delaware Licensed Public Accountant (DE-LPA)

About Instructor

Steve Abramson, CPC, CLU, ChFC

President, APS Pension and Financial

Stephen Abramson is the President and founding partner of APS Pension & Financial Services established in 1977, a mid-size consulting and actuarial firm employing twenty-two professional and support staff specializing in pension and pension-related services. For over 40 years, APS has been providing closely held businesses with financial services including pension design and administration, business succession planning, and wealth preservation planning. In 2015 APS Investment Management was established to provide fiduciary services to 401(k) and 403(b) plans and in 2018 APS Wealth Management, a Registered Investment Advisor (RIA), was established to provide investment management services to individual clients and retirement plans replacing his previous relationship with a Broker/Dealer. Steve has taught professional level education programs for the American Society of Pension Actuaries; lectured to various professional groups, including the National Conference of CPA Practitioners, The NYS Society of CPAs, Nassau Bar Association, the C.W. Post Tax Institute, and the National Institute of Pension Administrators; and conducted continuing education seminars for Certified Public Accountants for the past 35 years. He is co-author of Plan Smart, Retire Rich published by McGraw Hill in 1998; author of Advisor’s Guide to Qualified Plans originally published by Aspen Publishing in March, 2002 and recently in the process of being updated with the 8th edition, and Retirement Financial Management for Clients Approaching Retirement published by Aspen Publishing in August, 2002. A less technical version of Advisor’s Guide to Qualified Plans entitled Guide to Qualified Retirement Plans: A Plain Language Primer was published by the International Association of Employee Benefits in March 2005. The second edition of this book was released in 2008.

Steve graduated from Cornell University in 1964, earned the designation of Chartered Life Underwriter in 1967 from the American College, Certified Pension Consultant in 1970 from the American Society of Pension Professionals and Actuaries and Chartered Financial Consultant from the American College in 1972.

Additional Information

Duration

2 Hours

Course Level

Basic

Instructional Method

QAS Self Study

Pre-requisites

None

Advance Preparation

None

FAQ’s

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NASBA APPROVED

MY-CPE LLC, 1600 Highway 6 south, suite 250, sugar land, TX, 77478

MY-CPE LLC (Sponsor Id#: 143597) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.NASBARegistry.org.

Ratings and Review

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Owen Mccafferty, CPA (US)

Mr. Abramson methodically reviews options in plan design for businesses. I found his checklist near the end of the presentation to be most helpful. His capacity to make the presentation interesting in a two hour no break presentation. I would recommend his presentation as great background knowledge for a practicing CPA in public practice.