Broker Check

401(K) PLANNING

Whether you are your only employee, or you have 500 employees, a 401(k) plan may be more affordable than you think.

We understand that the expense associated with retirement plans can be a burden to a small business, but we also understand the need for employees to have a retirement vehicle to invest in. This is why we work with small businesses to find low cost 401(k) plans that fit their needs.

Who can establish a 401(k) plan?

  • Sole Proprietorships
  • Partnerships
  • LLCs
  • Tax Exempt Organizations
  • C-Corporations
  • Subchapter S-Corporations

A business with a little as 1 employee can establish a 401(k) plan.

Are there advantages to having a 401(k) plan?

  • Tax deductions on employer contributions
  • Tax credits for new plans
  • Tax deferred growth for you and your employees
  • Highest contributions limit of any qualified retirement plan
  • Employee recruitment
  • Employee retention

How can we help?

  • Our focus is in small businesses
  • We broker our business through the largest Independent Broker-Dealer in the country. This means that we have the flexibility to choose which service providers we work with.
  • This flexibility allows us to work with a multitude of Third Party Administrators (TPAs), and Record Keepers, both local and national, bundled and unbundled.
  • Local experience - Our firm has been in Rochester for over 25 years and we broker our business through LPL Financial, the #1 independent broker/dealer in the country,¹ and have the flexibility to establish plans with any given number of service providers

We structure our business in a way that allows us to feel like we can offer the best services to our clients, and we only want your business if you feel the same way.

Why we believe in supporting small businesses? ²

  • There are 28 million small businesses in the U.S. - which outnumber corporations 1162 to 1
  • Small businesses employ 57% of the country's private workforce
  • Small businesses pay 44% of U.S. payroll
  • 60 to 80% of all new jobs come from small businesses
  • Only 50% of businesses survive five years - though most (70%) hit the two-year mark
  • A small business went bankrupt every 8 minutes in 2009
  • only 14% of employers with fewer than 100 employees offer a retirement plan

What if I already have a plan?

  • As a small business owner you have a fiduciary responsibility to your plan
  • As part of an employer’s due diligence, it is necessary to review a plan and to identify plan options that are available through your existing plan as well as options that are available through other service providers
  • The retirement realm changes every year necessitating a review of your current plan to ensure it’s still the most appropriate fit for you and your employees
  • We are able to work with you to determine if you have more appropriate plan option

Is now not the best time?

It may be a long term goal of your business to offer a 401(k), but you may not be able to afford it right now. This does not mean you can’t start helping you employees save for their future. There are IRA, and 529 solutions that can come at little or no cost to you, but still play a huge role in helping your employees save.

 

¹ As reported by Financial Planning magazine, June 1996 – 2015, based on total revenue.
² Data pulled from CNBC.com and BusinessInsider.com. More recent data may alter these assessments.

 

Contact Us

Contact us and gain a strong understanding of what options there are available to you with no obligation to move forward.

Cornerstone Advisory Group
200 Park Point Drive
Rochester, NY 14623
Phone: 585-426-0502
Fax: 585-426-1004

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