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Small Business 401(k) Blog

The Frugal Fiduciary Small Business 401(k) Blog

Get the latest industry news, deadlines and tips you need to know to help tackle your fiduciary responsibility needs.

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Retirement Plan Types | Retirement Planning | Financial Advice

401(k) Rollovers: When One is in Your Best Interest

By: Eric Droblyen
May 15th, 2019

If you’re leaving your job for a new employer, you must decide what to do with your 401(k) account. To keep growing your savings tax-free until retirement, you could have up to 3 options: keep it where it is, roll it to a new employer-sponsored plan, or roll it to a personal IRA. It’s important to make an educated decision. Otherwise, you risk making your dream retirement more expensive than necessary.

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Retirement Plan Types | Safe Harbor 401(k) | Testing

Safe Harbor or Traditional 401(k) Plan – How to Decide

By: Eric Droblyen
March 6th, 2019

Safe harbor 401(k) plans are the most popular type of 401(k) used by small businesses today. Unlike a traditional 401(k) plan, they automatically pass the ADP/ACP and top heavy nondiscrimination tests when mandatory contribution and participant disclosure requirements are met. This trade-off is worth it for many business owners, who often bear the brunt of the consequences when their 401(k) plan fails testing. However, a safe harbor 401(k) plan is not the best fit for every small business. They can cost more than a traditional 401(k) plan, but offer less plan design flexibility – making it harder for some business owners to meet their plan priorities

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401(k) Plan Design Checklist

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Subscribe to the The Frugal Financial Small Business 401(k) Blog and receive this free checklist for help in determing the best 401(k) plan design options and fit for your company.

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Retirement Plan Types | Provider Shopping

Replacing SIMPLE IRAs with a 401(k) – Frequently Asked Questions

By: Eric Droblyen
December 12th, 2018

Over the years, I’ve met with countless small business owners thinking about replacing their current SIMPLE IRA (Savings Incentive Match PLan for Employees) with a new 401(k) plan. During these meetings, the most common questions I receive are:

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Retirement Plan Types | Plan Design

Are Profit Sharing Contributions Right for Your 401(k) Plan?

By: Eric Droblyen
January 10th, 2018

Bar none, profit sharing contributions are the most flexible type of employer contribution a company can make to their 401(k) plan.  These contributions are not only discretionary, but they can be made to any eligible plan participant – even if the participant fails to make 401(k) deferrals themselves.  They can also be allocated using dramatically different formulas – allowing employers to meet a broad range of 401(k) plan goals with them. 

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Retirement Plan Types | Plan Design

403(b) vs. 401(k) Plans for Non-Financial People

By: Holly Roussel-Godfrey
July 26th, 2017

You’ve been taxed with the responsibility of setting up a retirement plan for your tax exempt organization and now you’re trying to decide between a 403(b) or a 401(k) plan. You’ve Googled, you’ve read, you’ve cringed at the technical language presented to you, desperately trying to understand the differences. Been there, done that.

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Retirement Plan Types | Plan Design

New Comparability 401(k) Plans - Are They Right for Your Small Business?

By: Eric Droblyen
April 19th, 2017

One of the most common goals for a small business 401(k) plan is maximizing owner contributions up to the legal limit - $60,000 for 2017 (assuming employee catch-up contributions). Often, the cheapest way to meet this goal is using a new comparability profit sharing contribution. Unlike other types of 401(k) profit sharing, these contributions permit an employer to allocate multiple contribution rates to different employee groups – making larger contribution rates to business owners possible.

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