Compare These Top Vendors for Retirement Consultants


Retirement industry advisers and consultants.
Bank of America Merrill Lynch

Bank of America Merrill Lynch Offers Industry-Leading Retirement & Benefit Plan Solutions. Find Out How Our Vast Resources, Personalized Advice & Thought Leadership Can Help Your Employees Achieve Financial Wellness Today.

Bank of America Merrill LynchVisit www.benefitplans.baml.com

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401k Plans

Information on 401(k) plans.

www.business.com/finance/401k-plans/
401k Rollover

Business directory to 401k rollover information and advice.

www.business.com/finance/401k-rollover/
403(b) Plans

Resources and services for 403(b) plans.

www.business.com/finance/403b-plans/
Retirement Plans

Companies that provide retirement plan benefits, including 401k plans and pensions. Get information on corporate retirement plans, or how to offer retirement benefits for employees.

www.business.com/finance/retirement-plans/
401k

401(k) plans allow employees to save for their retirement by contributing a portion of their wages to an individual account. Employers can also contribute to 401(k) plans in the form of employee benefits; be sure your 401(k) vendor can manage your employees’ investments wisely.

www.business.com/finance/401k/
401(k) Plans Key Terms

Source: /guides/401-k-plans-key-terms-33062/

Learning about 401(k) plans key terms is a good place to start if you're considering starting up a retirement fund for your employees. From automatic enrollment to matching, after-tax and pre-tax contributions, 401(k) plans have several terms you may want to know before beginning one of these programs. Read More »

401(k) Plans Industry Overview

Source: /guides/401-k-plans-industry-overview-21253/

The 401k plan grew from a little known tax code loophole--which is where the 401k name came from--to the most common way workers invest for their retirement. This industry possesses trillions of dollars in allocated 401k retirement plan contributions. Read More »

Defined-Benefit Pension Plans for Sole Proprietors


Defined-benefit pension plans are best suited to high-income entrepreneurs over the age of 45 who are able to sock away lots of money fast — up to $175,000 annually. With such a plan, you set a target level of annual benefits you want to receive at a target age and then make contributions based on actuarial projections.

The downside, however, is that these plans are more complex and costly to administer than defined-contribution plans, such as 401(k) plans, and they also require lump-sum distributions at retirement. With those caveats in mind, there are some enticing plan benefits, including:

  1. Guaranteed retirement income.
  2. Asset protection from creditors.
  3. Larger income tax deductions than defined-contribution plans.
  4. Fast accumulation of retirement income.
  5. Plans are insured by the Pension Benefit Guaranty Corp. (PBGC).

Define your target benefit

Your target benefit can be based on a fixed percentage of your annual income, or you can choose a flat monthly dollar amount.

File appropriate forms

With a defined-benefit plan, you must file certain IRS forms annually and pay premiums to the PBGC, which insures the plan. These costs can drag down returns, unless you're contributing large sums of money
Form 5500 and a Schedule B from the IRS. Note that an enrolled actuary must sign the Schedule B.

Hire an administrator and actuary

Because defined-benefit plans are so complex, you'll have to hire a retirement plan specialist to administer the plan and an actuary to calculate contributions and valuations. Many major retirement plan providers offer both these services.

Consider fees

Since defined-benefit plans have gone mainstream, there's more help available when implementing a plan. However, you'll want to note advisor fees.

Consider a 412(i) plan

Traditional defined-benefit plans allow for up to approximately $160,000 in annual contributions. Another type of defined-benefit plan that's gaining popularity is called a 412(i) and lets you contribute significantly more each year — up to $450,000 annually with some providers.

Choose additional retirement plans

Having a defined-benefit plan doesn't exclude you from holding other types of retirement plans as well. Consider other options, such as a 401(k), SEP or Roth IRA.
  • Proposals made in Washington may simplify plan administration considerably in future years.
  • Plans must be opened by the end of your company's fiscal year to make contributions for that year.
  • Remember, even if your business is losing money, you must fund your plan at least quarterly.
  • Avoid aggressive plan investments, because if you have losses, you'll have to make them up through dramatic increases in contributions.
  • Think of a defined-benefit like a mortgage: the capital you need determines your annual payments.
  • If you plan on hiring in the future, note that tax codes may require you to make contributions for employees.