401k Case Study

the distributions would be untaxed income on the FAFSA for the next year. This will reduce eligibility for the financial aid needed.

In the New York Times article " it's a 401(k) world", Thomas L Friedman states how technology has advanced to the point where anyone can track anyone else's form of activity. Friedman States the good and the bad of this new era of technology. He tells us how certain people will make a living in this type of world. Living in this world with new technology, it could either make you or break you. Friedman's many facts makes me agree with what he has to say.

I also wanted to introduce myself and my team – Level Four Wealth Management. We focus on transforming the 401(k) experience to support and empower your company’s hiring, retention and productivity goals.

We often ask the question, “How does our 401(k) plan stack up?” When you are an employee, you will consider items such as the investment choices, administration fees, or loan terms. However, if you are an owner, the most important thing to think about may be how to contribute the highest amount you can under Section 415. For 2016, the defined contribution plan annual addition limit without catch-up is $53,000, and will rise to $54,000 next year.

Mr. Sledzinski began by welcoming all of the attendees. He explained the purpose of the Annual Meeting and the benefit to the attending members. He went on to discuss the history of the Fund and how it has evolved into such a successful program. He explained the role that each of the services providers play and how they contribute to the long term partnership. Mr. Sledzinski then asked each of the attendees to give a brief introduction along with their company affiliation.

For the jurisdiction of British Columbia, the Registered Pension Plan member contributions are due within thirty days after the end of the month in which the deductions occurred. In practice, there may be agreements with pension administrators that require earlier and/or more frequent remittances. The monies withheld from the employee and the employer contributions must be held in trust prior to remittance. The Registered Pension Plan types would be either a Defined Benefit Plan or a Defined Contribution Plan.

Building and running a successful 401k advising practice is not an easy profession. In fact, it takes a large amount of time, effort, talent, and resources. While starting a 401k practice is difficult, growing it can be even more of a challenge. And in this industry, growing your business should be one of your main goals.

What are the “moving parts” in your Plan? You may not know the components of a 401(k) plan, or, at this point, maybe you are unable to identify them. The terminology in our industry is often misunderstood and misapplied. Jargon like ‘plan administrator’, ‘trustee’, ‘custodian’, ‘recordkeeper’, and ‘TPA’ are often used interchangeably and communication is confusing, with some of your service providers using different terms to refer to each other. Providers that offer 401(k) services in a "bundled" product to businesses may function in multiple roles or even all the roles. This only adds complexity to an already confusing structure that lacks transparency. Therefore, we try to clear up the confusion by

Situation 1 - one main issue I see is as soon as they had each child, they should have saved for college. They would not have had to use any of the $42,000 they had in savings. for college. There is a college savings plan called the 529 savings plan. The main benefit from this plan is you earn tax credits from the government and most states. The only negative from this is it is like a 401k; you can withdraw funds at any time for any reason, but the earnings portion of non-qualified withdrawals will incur income tax and an additional 10% penalty tax.

Early last month, for a case involving an unfiled NIW petition, a potential derivative child beneficiary surpassed the age for which he was eligible to earn permanent residence along with his parent. (The case was unique with respect to the child, since a decision on his parent’s petition had yet to be rendered.) As Jerry pointed out to those involved, the failure to file the parent’s NIW application well in advance of the child’s aging out provides a learning opportunity to review the statutes and regulations involving child beneficiaries.

He does have his 401(k) through his former employer, Oracle. He’s kind of managing that himself, so it’s sitting there as well. One of his issues is that he’s not working, he’s living off his savings along with his wife’s income. How his plan will work, and what income we’re able to generate for him, is going to determine when and if he goes back to work. I told him, regardless of if he goes back or not, we’ve got to fix the portfolio. We’ve got to get it invested correctly. We did talk about fixed indexed policies. He is familiar with them, he’s gone through some other advisors, so he does have some familiarity with them. We went over them and we talked about why we use them, why we use them for income. He was talking about the gaps and the spreads, and the growth on the account, and I told him and helped him redirect his thinking by letting him know that when he does these types of accounts, the focus is income and income only. I had to, kind of, get his train of thought, down a different path, and understanding that the reason we does these are for guaranteed life time joint incomes. He gets it. He understands. It was a real good meeting. He had a lot of questions. We went through a lot of things. I

I would suggest both need to find out if their employer offers a 401(k). By participating in an employer-sponsored retirement account, their employers may match part or all of their contributions. I would also suggest

Salaries expense is considered deductible by a business according to Publication 535, if the amount is ordinary, necessary, and reasonable. Ordinary means that the expense occurs regularly and necessary means that the expense facilitates the reaching of desirable business goals. The IRS scrutinizes compensation paid to the owner over employees due to lower salary expenses and masking salaries into a large distribution. Mr. Jones and Mandy’s salary amounts of $180,000 and $70,000 respectively are reasonable, however, outstanding distributions are red herrings for masking compensation not included in owner salaries. If Mr. Jones decides to take a cash withdrawal and take dividends, he needs to pass two requirements: prior year dividends were issued to shareholders and his salary is over the 60% profit threshold. To protect the business from IRS suspicion, Mr. Jones and his daughter need meticulous records regarding salary payments

The last few years have displayed no shortage of uncertain times in the market, economy and rate of employment. Thus, in this day and age, planning a retirement strategy requires one to engage in strategies that are both smart and safe. Given the modest amount of money that I have to invest ($25,000), I would like to avoid betting big on any one asset in the future. Thus, for me, given the attitudes that I have about the stock market and the economy in the nation and world, I should probably work with a fund manager so that I can have "…the freedom to move nimbly in and out of almost any asset class, anywhere in the world" (Marte, 2011). This way, I don't have to put all of my confidence in just a couple forms of stock; by spreading my money around I'll be able to establish a bigger safety net and a greater amount of peace of mind. The types of investments I would most likely make would be in 'world allocation' funds which refer to portfolios that create a blend of stocks, bonds, currencies and other assets (Marte, 2011). According to Marilyn Plum, a leader in portfolio management at Ballou Plum Wealth Advisors, "Things move very quickly and it just gives them a lot of flexibility to move where the growth is," (Marte, 2011). These world allocation funds have been steadily growing in popularity and I truly think it's because of the uncertain economic times we've been in. While the economy is bound to stabilize at some point, until it

A trust who share a common financial goal which pools the savings of a number of investors.