October 1 Safe Harbor Deadline Approaching

Actuaries and Employee Benefit Consultants

We hope you are having a great summer and enjoying some time off!

Of course taxes don’t take the summer off, and it’s already July! If you have business owner clients who need to reduce their current year taxable income and save for retirement, now is the ideal time to evaluate their retirement plan options for 2017.
The deadline to establish a safe harbor 401(k) plan is October 1st, 2017. These plans provide significant benefits to business owners and their key staff members:
  • A safe harbor 401(k) allows business owners to make the maximum 401(k) contribution this year ($18,000 or $24,000 if age 50+).
  • Safe harbor company contributions can be either a flat 3% contribution to eligible employees, or a matching contribution of up to 4% of pay.
  • The plan may allow for additional profit sharing or matching contributions that can benefit business owners, often at little to no additional employee cost.
  • These plans can be paired with cash balance/defined benefit plans for even larger tax-deductible contributions, if desired.
Please contact us if we can help you help your clients reduce their tax bill and accumulate wealth for the future. We look forward to an opportunity to work with you!
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