Do You Have the ‘Right’ Retirement Plan?

Nov 29, 2023 at 4:51 pm

As we approach 2024, do you know if you have the “right” retirement plan? There is not a one-size-fits-all solution for retirement plans. Each company’s specific demographics, cash flow, and goals should factor into the equation.

We meet many practices that have maintained a SIMPLE-IRA plan for many years. For some owners, this is the perfect retirement plan, but for others, it is inadequate and should be upgraded.

Should your SIMPLE-IRA be upgraded?

How would you know if it’s time to upgrade your SIMPLE-IRA?

  • Are you bumping up against the IRS’s contribution limits, and would like to invest more for retirement?
  • Is your practice experiencing prosperity (i.e., your gross revenue, profit margin, and net profit are increasing)?
  • Is your CPA emphasizing the need for additional tax deductions?
  • Do you need an additional tool to recruit, reward, and retain top talent?

If so, a credentialed Fiduciary Plan Advisor could help you explore a Safe Harbor 401(k) plan with customized profit-sharing language unique to your situation.

The benefits of a Safe Harbor 401(k) plan

Upgrading your SIMPLE-IRA to a Safe Harbor 401(k) plan can help you:

  1. Increase your total contribution from $20,000 to $70,000 or more.
  2. Redirect a significant number of payments from the IRS and your state to you and your employees.
  3. Attach a 6-year graded vesting schedule to a portion of what you’ll be contributing on behalf of your employees.

In today’s world, setting up and maintaining a customized 401(k) plan is easy and inexpensive. For many years, many in the financial advisory or tax arenas have recommended a SIMPLE-IRA plan over a 401(k) as an inexpensive, “simple” (no pun intended) payroll-deduction retirement investment program.

A SIMPLE-IRA is often a great start for many new or very small practices. But if your practice and your profits have grown, it may be time to reconsider your options.

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Financial Wellness columnist Geoff Huber leads Triune Financial Parters' retirement plan department. He's been in the financial planning industry for three decades, focused solely on retirement plans for over 20 years. He works with credentialed third-party administrators to serve clients, primarily small- to mid-sized businesses. About Triune Financial Partners Triune Financial Partners is committed to empowering people with life-changing financial counsel. Triune is an independent firm that values clarity, simplicity, and transparency. We're a fiduciary, which means we always put our clients' interests first. In addition to Financial Life Planning for individuals and families, we also serve 100+ businesses, churches and nonprofits to craft powerful 401(k) and 403(b) plans for their organizations. Whether you're working with one of our Financial Life Planners or setting up a 401(k) plan for your organization, Triune is here to help you thrive financially. Interested in working with us? Get in touch at

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