Finally – there is a powerful retirement solution designed for the ultra small entrepreneur. The Small Business Owner 401k-Plan (SBO-401k-Plan) is intended exclusively for business owners with no employees other than a spouse and offers financial advisors a superior product for their clients.
(PRWEB) September 23 2003--Finally – there is a powerful retirement solution designed for the ultra small entrepreneur. The Small Business Owner 401k-Plan (SBO-401k-Plan) is intended exclusively for business owners with no employees other than a spouse and offers financial advisors a superior product for their clients.
We know our clients are unique, they will not settle for an off-the-shelf 401k plan. Small business owners want a CHOICE that will accommodate their business model and allow them to expand their employee benefits. Financial Advisors want the flexibility of having unlimited choices to assist their clients in reaching investment goals. The SBO-401k-Plan is designed to do just that," says BSW Benefit Plans Plus, L.L.C., Manager Patrick Shelton, GBA.
With this new plan, individuals can save up to $40,000 annually by maximizing salary deferrals and employer contributions for 2003. For those ages 50 and over an additional $2,000 can be contributed for a total of $42,000.
To make this opportunity a reality, the team at Benefit Plans Plus (BPP) of St. Louis, has taken their services online to maximize convenience for the end user.
New Online Tools
During a quick visit to www.bpp401k.com the business owner or financial advisor can have their current plan analyzed for free, compare the benefits of a traditional SEP verses the SBO-401k-Plan by using BPPs exclusive Comparison Calculator and even apply online.
BPPs separate 401k Calculator allows the user to determine the annual tax savings of participating in a 401k plan and project future account balances. By using this tool, individuals can determine the best combination of withholdings and salary deferrals to maintain their take home pay while maximizing retirement savings.
The SBO-401k Plan
The unique feature of the SBO-401k-Plan is the flexibility of unlimited investment options. With this unparalleled plan, individual business owners can choose either self-directed or professional fund management at the financial institution of their choice. With this plan financial advisors can offer their smallest 401k clients access to almost any type of investment.
I am not aware of any vendor who provides this type of retirement arrangement, our flexible investment options and online tools make the SBO-401k-Plan one-of-a-kind," says Shelton. We want solo business owners and especially financial advisors across the nation to know there is a more flexible Individual 401k retirement plan available."
SBO-401k-Plan Features for 2003
Eligible Employers: Businesses that employ owners, their spouses, and have no employees under Title I of ERISA (includes corporations, partnerships, and sole proprietors).
Plan Establishment Deadline: Company tax year-end.
Eligibility: Age 21, no service requirement, immediate entry
Investment Options: Unlimited. You choose either Self-Directed* or Professional Management within a single custody account at the financial institution of your choice. (*Must comply with Section 4975 of IRC (Prohibited Transaction Rules)
Valuable Features
Open investment architecture
Loan: 50% of vested balance not to exceed $50,000
No discrimination testing
Consolidate assets from IRAS, other 401ks etc.
Salary Deferrals: Up to $12,000 (not to exceed 100% of compensation) **. Total salary deferral contributions and employer contributions up to a maximum of $40,000.
Catch-Up Contributions: Participants age 50 or older may contribute an additional $2,000 in salary deferrals beyond the $12,000, which does not count towards the overall contribution limit of $40,000.
Employer Contributions: Up to 25% of compensation (earned income for self-employed) ** or maximum $40,000. (Salary deferral contributions are also counted towards the $40,000 limit.) (**$200,000 compensation limit for 2003)
Rollovers: Rollovers are allowed from traditional IRAs, SEP, SIMPLE***, profit sharing, defined benefit, 401(k), 403(b) and governmental 457 plans. (***SIMPLE IRA rollover eligible after two-year holding period is met.)
Loans: Available (subject to IRS guidelines) to all participants, including unincorporated business owners.
Withdrawals: Limited to distributable events such as retirement, death or disability.
Set-up Charge:
On-going Service Charges:
Plan Document and Adoption Agreement $500 (deductible).
Postage & Handling at Cost
Annual Plan Administration: $350 (deductible)
•Employer Contribution Calculation
•Compliance Review
•Annual Accrued Participant Report
IRS 5500 preparation: $250 (deductible) annually for signature-ready 5500-EZ (Not required until assets exceed $100,000).
Loan fee: $150 per loan set-up; $50 annual maintenance fee.
Distributions $95.
Additional Service Charges:
Trust reconciliation for multiple accounts; $95 per hour (1 hr. min.)
$50 charge per participant starting with 3rd life
BSW Benefit Plans Plus, L.L.C., founded in 1998 for comprehensive specialized retirement plan administration, is a subsidiary of Brown Smith Wallace, L.L.C., of St. Louis, Missouri. With more than 100 resource associates, BSW L.L.C. serves clients throughout the world. Today the BSW Benefit Plans Plus, L.L.C., team exists to provide customized employee benefits … on time, on budget, as ordered.
The BPP staff averages more than 19 years of experience and is enrolled to practice before the Internal Revenue Service. They also maintain advanced designations including: Associate Professional Member through the National Institute of Pension Administrators, Certified Pension Consultant, and Qualified 401k Plan Administrator through the American Society of Pension Actuaries.
For additional information please visit www.bpp401k.com or contact Patrick M. Shelton, GBA at pshelton@bpp401k.com or call 800-511-0726 ext. 1212.
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