Retirement Plan Consulting

Overview

Retirement planning is an integral part of complete and holistic financial planning. Lurie’s retirement plan consultants in Minneapolis custom designs and administers qualified retirement plans that help small to medium-sized business owners and employers reduce their current taxes, increase their retirement savings, and attract and retain their employees. In our pursuit of providing smarter, more strategic Retirement Services, we partner with Financial Advisors, Accountants (CPAs), and other Third Party Administrators (TPAs) and help them customize a design that meets the business owner needs. We offer highly experienced and forward-thinking retirement plan experts that will help determine whether a 401(k) Profit Sharing Plan, a Cash Balance Plan, or a combination of the two will be best suited for each individual situation.

We provide complex retirement plan design, consulting, administration and actuarial services to over 500 qualified plans, and our clients are located throughout the country. Our consultants have earned industry designations through the American Society of Pension Professionals (ASPPA), the Society of Actuaries (SOA), the National Institute of Pension Administrators (NIPA), and the Joint Board for the Enrollment of Actuaries (JBEA). We attend industry conferences and keep current on legislative changes so that we can provide you with the highest level of service.

PLAN SPONSOR LOGIN

Retirement Plan Consulting includes:

  • Actuarial studies, including:
    • Accounting Disclosure and Expense Reporting
    • Actuarial Funding Valuations
  • Compliance reviews
  • Plan Design Consulting
  • Plan termination support
  • Retirement plan design consultants
  • Third party administration (TPA) of qualified retirement plans, including:
    • 401(k) Plans
    • Cash Balance PlansProfit Sharing Plans
    • Employee Stock Ownership Plan (ESOP)Traditional Defined Benefit Plans
  • Vendor searches

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Lurie Retirement Benefit Plan Options

What plan is right for you?

The chart below outlines the basic features of available plan options. Sometimes the optimal solution requires a combination of plans. Our Retirement Plan Consulting Group can review your situation and recommend the right plan design for your company.

PLAN OPTION CONTRIBUTION LIMITS ADVANTAGES IDEAL PLAN SPONSOR
SIMPLIFIED EMPLOYEE PENSION (SEP)
  • $52,000 individual limit
  • 25% deduction limit on employer contributions
  • Little or no annual administration cost
  • Can exclude employees under age 21, or less than 3 years of service in the last 5 years
  • Can be established after the end of the plan year, up to the tax filing deadline of the employer
  • Small businesses with few employees
  • Owners who are comfortable allocating the same percentage of pay to all eligible participants
SIMPLE PLAN
  • $12,000 employee deferral limit with $2,500 catch up for participants over age 50
  • Required employer match of 3% or 2% nonelective contribution to all eligible employees
  • Little or no annual administration costs
  • Small businesses with fewer than 100 employees that want to offer an elective deferral plan to employees
PROFIT SHARING PLAN
  • $52,000 individual limit
  • 25% deduction limit on employer contributions
  • Discretionary contributions
  • Vesting permitted
  • Flexibility in allocation formulas to benefit key employees and/or owners
  • Can exclude employees who work limited hours, are under age 21, or have less than 2 years of service
  • Companies with fluctuating income that want to make discretionary contributions
  • Companies concerned about the high administration costs with a 401(k) plan
401(k) PROFIT SHARING PLAN
  • Employee deferrals permitted up to $17,500/$23,000 for those over age 50
  • Total contributions of $52,000/ $57,500 per employee
  • 25% deduction limit on all contributions
  • Discretionary matching and profit sharing contributions
  • Elective deferrals can be either pre-tax or Roth
  • Flexibility in allocation formulas to benefit key employees and/or owners
  • Vesting permitted on all employer contributions
  • Can exclude employees who work limited hours, are under age 21, or have less than one year of service
  • Companies who have a desire to offer a retirement saving option that includes employee deferrals
SAFE HARBOR 401(k) PROFIT SHARING PLAN
  • Same as 401(k) profit sharing plan
  • Required employer contribution that can be either a match or nonelective
  • No nondiscrimination testing on 401(k) deferrals, which allows highly compensated employees to maximize salary deferrals
  • Elective deferrals can be either pre-tax or Roth
  • Vesting permitted on discretionary employer contributions
  • Companies with a group of highly compensated employees or owners that want to maximize deferrals
  • Plans with low participation rates among employees
CASH BALANCE PLAN
  • Employee limit is amount needed to fund $210,000 annuity beginning at retirement
  • Employer deduction is the amount needed to fund the plan, or 31% of aggregate compensation if paired with a profit sharing plan
  • Ability to maximize contributions and tax deductions
  • Vesting schedule permitted
  • Can be sponsored by companies that also have a 401(k) profit sharing plan
  • Can exclude employees who work limited hours, are under age 21, or have less than 2 years of service
  • Companies with high, steady earnings
  • Owners and/or key employees who desire to contribute more than $52,000/$57,500 contribution plan limit

Lurie Cash Balance Plans

Cash balance plans are a solution for business owners looking to maximize retirement savings. A cash balance plan is a type of defined benefit plan that offers many advantages to employers. The easily understood benefit formulas and flexible plan design make it an ideal retirement plan to attract and retain top talent.

CASH BALANCE PLANS

  • Accelerate Savings, Maximize Tax Deductions
  • Cash Balance Plans are Ideal for Employers:
  • With partners or owners who want to contribute more than $52,000 to a retirement account
  • With owners approaching retirement who want to accelerate savings
  • Who want to increase current tax deductions
  • Who have steady cash flows

When the proper care is taken during the plan design process, a cash balance plan is easily manageable with a firm such as Lurie to administer your plan.

Working closely with your office staff, our plan administrators will provide you with careful and consistent attention to detail to facilitate the smooth operation of your plan functions, including:

  • Plan design
  • Plan documentation assistance
  • Employee communication

Cash Balance Table Example

Whether a cash balance plan is right for you depends on your particular situation. Lurie will include an illustration, based on your numbers, as part of a proposal for Third Party Administration services.

Lurie Third Party Administration - Business Owners

Flexible Administration Models, Well-Crafted Designs

As a business owner, you are most likely looking for ways to accelerate retirement saving over the next several years. Consider the opportunities a well-crafted retirement plan can offer.

Lurie designs retirement strategies aligned with your tax and savings goals. Using qualified plan design, and third party administration expertise, we analyze the choices you have, focusing on least cost/highest savings potential options. Our technical administration and support services enhance smooth follow-through once your design is in place.

Choosing the Right Plan Options

Which of the following describe your retirement plan goals?

  • To increase my tax deductible contributions
  • To reduce my current taxes
  • To accelerate my retirement savings
  • To retain my best employees
  • To attract talented people

Customized Plan Design

We take the time to understand your business and personal situation, based on employee demographics and salary mix.

Frequently, the optimal plan design blends multiple options to achieve tax and retirement savings goals. Listed below are some of the more popular plan options:

  • 401(k) Plans
  • Cash Balance Plans
  • Profit Sharing Plans
  • Defined Benefit Plans

Third Party Administration

Lurie specializes in third party administration.

Using a flexible service model and efficient processes, our team provides annual plan administration services to over 500 plans.

We Partner With Your Advisors

We work in close cooperation with your investment advisor, and others involved with the service of your plan, to streamline completion and delivery of your retirement plan.

Our Retirement Plan Consulting Philosophy

Our commitment to excellent client service is guaranteed by our service philosophy, that:

  • Your situation receives thoughtful consideration
  • Technical excellence is the backbone of our practice

Comprehensive Expertise

Lurie comprises actuaries and retirement plan professionals. We understand the regulatory complexities governing retirement plans, and can support you through the entire process of plan design and ongoing administration.

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