Upgrade your clients’ SIMPLE IRA to a 401(k)
SIMPLE IRAs have a much lower contribution limit and can be limiting to small business owners. With a 401(k), business owners can save an additional $54,500 compared to a SIMPLE IRA and eliminate the additional work required of meeting with each individual participant. Work smarter, not harder with 401(k) retirement plans.
- The contribution limit is $54,500 less than a 401(k) Profit Sharing Plan.
- Requires an employer contribution to all eligible employees while a basic 401(k) does not.
- Employees are 100% vested in employer contributions, eliminating the opportunity to incentivize employee retention through a cliff or graded vesting schedule.
- There are no loan options, while a 401(k) Retirement plan allows for loan transactions.
- Limiting plan design options, leaving out the opportunity to do cross-testing or exclude different categories of employees.
- The lesser known and not nearly as popular as a 401(k), resulting in missed opportunities with retainment and recruitment.
- Can only be offered to businesses with less than 100 employees, limiting growing businesses and eventually forces them to disrupt their employee's retirement plan experience by changing plans.
Interested in converting your client’s SIMPLE IRA to a 401(k)?
Don’t wait till the end of the calendar year to act. When converting an existing SIMPLE IRA to a 401(k), Plan Sponsors must send out participant notices that the plan is terminating by the November 2nd deadline.
Hire Trinity to startup your 401(k) Plan today so that it is effective as of January 1st. This will prevent interruption to payroll contributions and allow key employees the opportunity to max out at $73,500 instead of $19,000 in deferrals.
Here at Trinity, we make complex pension concepts simple with our seamless conversion process that creates a smooth transition for former SIMPLE IRA clients.
Contact Trinity Pension Consultants to learn more: 877.206.6290