401k and Cash Balance Plans

<p>Key Takeaways:</p> <ul><li>The CARES Act allows business owners to receive up to a $5,000 tax credit for the next three years to offset administrative costs of setting up a 401(k) plan.</li> <li>Requiring auto enrollment for employees in a 401(k) plan can result in a $1,500 tax credit for the business owner in the first year.</li> <li>Cash balance plans allow business owners to contribute a significant amount of money towards retirement, potentially several hundred thousand dollars per year.</li> <li>Cash balance plans require a five-year commitment and annual contributions, even in years with poor cash flow.</li> </ul> <p> </p> <p>Chapters:</p> <p> </p> <p>| **Timestamp** | **Summary** | | ------------- | ----------- | | 0:00:07 | Introduction and disclaimer | | 0:00:38 | Discussion on tax planning | | 0:02:20 | Benefits of 401K plans for business owners and employees | | 0:03:41 | Tax credits available for setting up a 401K plan | | 0:04:21 | Additional tax deductions with profit sharing component | | 0:04:52 | Exploring cash balance plans for higher contributions | | 0:06:11 | Considerations for implementing a cash balance plan | | 0:06:54 | Using defined benefit plans for lifestyle businesses | | 0:08:19 | Layering different retirement plans for maximum benefits | | 0:09:54 | Contact information for further discussion on tax planning |</p> <p> </p> <p>Powered by<a href='https://www.reiffmartincpa.com/'> ReiffMartin CPA</a> and<a href='https://stonehillwealthmanagement.com/'> Stone Hill Wealth Management</a></p> <p> </p> <p>Social Media Handles </p> <p> </p> <p>Follow Philip Washington, Jr. on Instagram (<a href='https://www.instagram.com/askphillip/?hl=en'>@askphillip</a>)</p> <p> </p> <p>Subscribe to Wealth Building Made Simple newsletter</p> <p><a href='https://www.wealthbuildingmadesimple.us/'>https://www.wealthbuildingmadesimple.us/</a></p> <p> </p> <p>Phillip Washington, Jr. is a registered investment adviser.  Information presented is for educational purposes only and does not intend to make an of