Meet Mary, Orthopedic Surgeon
With 55 employees and counting, Mary’s small business—a medical healthcare practice—has seen steady growth over the last few years. However, she’s always struggled to find and retain high quality employees, so she wanted to add a retirement plan to the benefits package offered to employees as a recruiting and retention tool.
Mary looked for a retirement plan that could integrate with her company’s payroll system so that employee information, like hours worked and employee contributions, would flow seamlessly between the two systems—one less thing to worry about. She planned to utilize the new retirement benefit as a way to take advantage of tax deductions for her business, so Mary and her financial advisor decided that a CoPilot Open Architecture 401(k) plan made the most sense for her clinic.
With several part time employees, Mary set up eligibility requirements to promote employee retention. She also selected Safe Harbor—a major plan design option that benefits herself and the associate doctors on staff. With Safe Harbor, the plan will automatically satisfy specific IRS non-discrimination testing while offering a required employer Safe Harbor contribution to all employees. Without Safe Harbor, there may be restrictions on the amount owners and top-tier employees can contribute to their 401(k), so highly paid employees will appreciate the fact that their own salary deferrals are not tied to the deferral rates of non-highly compensated employees on staff.
Mary’s advisor takes care of the investment selection for the 401(k) and helped her and her employees set up the new CoPilot plan. Her advisor also handles enrollment meetings and touches base with her employees annually to encourage higher contribution rates and answer investment related questions. The CoPilot service itself also includes day-to-day plan and participant support.
Many small business owners can relate to Mary’s goals, attitudes, and challenges when it comes to running her small business while also retaining quality employees and recruiting top local talent.
Click the + below to learn more about Mary’s small business:
To learn more about choosing the right plan for your small business and explore our CoPilot plan options, check out the Retirement Plans Flowchart tool.
The CoPilot Open Architecture 401(k) is a great fit for this small business because it offers the CoPilot features of Savings Alerts and Years of Retirement calculations for participants, while providing ultimate flexibility in plan setup and investment selection for the plan’s advisor. With access to thousands of investments, the CoPilot Open Architecture can the needs of any size company.
Providing a company match contribution in a 401(k) can be a huge benefit for both employers and employees. That’s why Mary included an employer match as part of her plan design. Watch this video to learn more.
Sometimes small businesses face unique challenges when it comes to their retirement plan, like passing required non-discrimination testing. That’s why Mary chose a Safe Harbor provision that’s designed to automatically satisfy specific non-discrimination tests, limiting the contribution restrictions often imposed on owners and top-tier employees.
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CoPilot recordkeeping services include Years of Retirement calculations and savings alerts. Services for CoPilot are provided by Plan Administrators, Inc. (PAi), an Ascensus company. The Years of Retirement resource is for illustrative purposes only and is not, in any way, a guarantee of future results. CoPilot Prime is a suite of services provided by Plan Administrators, Inc. and PAi Trust Company, Inc. (PAi), which are Ascensus companies. CoPilot recordkeeping services include Years of Retirement calculations and savings alerts and are provided by PAi. Investment fiduciary services for CoPilot Prime are provided by PAi Trust, which is an affiliated business entity to PAi under common control and ownership interest. Services for CoPilot Prime Pooled Employer Plan are provided by PAi Trust Company, Inc., an Ascensus company. 401(k) plans are: Not FDIC insured | Not bank guaranteed | May lose value CoPilot IRA is a retirement service and is not an independent entity. Services for CoPilot IRA, including Years of Retirement and savings alerts, are provided by and through PAi Trust Company, Inc., an Ascensus company. PAi Trust Company does not provide any tax, legal, or investment advice. Individual Retirement Accounts are: Not FDIC insured | Not bank guaranteed | May lose value |