| | FEBRUARY - 2023MANAGEHRMAGAZINE.COM19Taking a "Team" ApproachBenetech makes it simple for such businesses by taking a "team" approach. We partner with a company's financial and tax advisors, and we bring value to the table by presenting the best retirement plan options to meet the business's unique needs.With any new client, we start by interviewing company management to determine what their goals are for their retirement plan and how much ­ if anything ­ the company would be willing to contribute, keeping in mind the employer contribution is a tax deduction to the company and those company contributions could be optimized for owner-employees and other key employees.Benetech works closely with financial advisors, CPAs and tax advisors across the country, supporting their efforts to provide the broadest range of services to their business owning clients. We become part of their team: their retirement plan specialists. This allows them to confidently include business retirement plans within their practice, while maintaining their primary focus on their core areas of expertise.We apply this team approach when designing a retirement plan for any new client because partnering with the company's financial and tax advisors optimizes the discovery process and simplifies the company's decision-making process. Bringing all parties to the table from the beginning helps ensure that the proposed retirement plan design is the right one, which saves everyone valuable time and money.Functioning as One of the Largest, Privately Held Third-Party Administrators in the NationWe are one of the largest, privately held third-party administrators in the nation. Our staff of actuaries and retirement plan professionals are experts in plan design, annual administration services, and consulting. Our clients are busy professionals--so we take pride in making the complex seem simple.Many of our clients have one HR generalist in charge of all of the HR functions. The business and the person charged with its HR responsibilities are busy running the core operations that have made the business a success. Many of these companies do not have the time to also become 401(k) Plan specialists as well.This is where Benetech's history as a privately held third-party administration company shows itself. Our primary focus is to provide our clients with excellent customer service. Benetech provides one retirement plan specialist as the company's principal point of contact, and we encourage our clients to contact us if they have any questions about how to properly operate their retirement plan.Offering Creative Solutions to Anti-Discrimination Testing ProblemsBusinesses with 401(k) Plans often come to Benetech looking for creative solutions to anti-discrimination testing problems they've been having. We review their situation and show them their plan design options, some of which are overlooked by large-scale 401(k) service providers.In some cases, a business may want to make a company profit-sharing contribution to a 401(k) plan if it could be used to reward those employees who have been critical to the success of the business. This can be achieved with a 401(k) plan using the Tiered profit-sharing allocation method, in which each eligible employee may be given a different contribution amount.In a recent case, the employee demographics of a business allowed the owner to target five important employees with a higher level of profit-sharing contribution than the rest of the employees. This made the 401(k) Plan more than just a basic employee benefit. It also became an important tool for the owner to reward and retain key staff. This plan design also allowed the owner to bring his total contributions to the $67,500 maximum, which made the decision to adopt the plan that much easier. Where Benetech uniquely excels is in designing retirement plans that act as a tax-planning tool for the owner of a small, closely-held business.A successful small-business owner's greatest tax-planning opportunity in the retirement plan space is with a Cash Balance Pension Plan. An owner may be able to receive contributions under a Cash Balance Pension Plan of up to $300,000 a year in exchange for a reasonable contribution to the other eligible employees. In many cases, up to 90 percent or more of the Cash Balance contribution may go towards funding the We are one of the largest, privately held third-party administrators in the nation. Our staff of actuaries and retirement plan professionals are experts in plan design, annual administration services, and consulting. Our clients are busy professionals--so we take pride in making the complex seem simple
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