Time is Running Out to Maximize Retirement Funds

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Do you have clients who should be more proactive in growing their retirement accounts?

A 401(k) retirement plan with a safe harbor provision can help employers maximize the salary deferrals of highly compensated employees, providing a convenient way for them to:

  • Defer up to $17,500 with pre-tax payroll deductions (and an additional $5,500 if they are 50 years old and over).
  • Contribute a maximum of $52,000 through employer and employee contributions in 2014 ($57,500 if the catch-up provision applies).
  • Consider Roth 401(k) post-tax contributions as an option, regardless of income level.

The deadline to establish a 401(k) safe harbor plan for 2014 is October 1st so now is a prime opportunity for client consultation.