Our professionals will work with you to design a plan that meets your business objectives through the use of innovative contribution formulas and plan features. Effective plan designs can maximize deductions for the plan sponsor while minimizing the cost to the plan and its participants, as well as providing appropriate retirement vehicles for the participant's investment.
Once your plan design is agreed upon, Matthews Benefit Group will provide you with a plan document that will outline the details of your plan. Over the course of our relationship, we will continually ensure that your plan is up-to-date with any legislation changes that affect your plan. We will also meet with you frequently to review goals and anticipate future plan issues.
When it's time to implement your plan, you will have a dedicated administrator who will specialize in your plan and be your primary contact. If you have any questions at any point during the year, your plan administrator will gladly provide you whatever assistance you may need. Each year, your plan administrator will save you valuable time by coordinating the end-of-year data collection as well as the annual reporting and contribution requirements.
We have a large medical practice client that sponsored a traditional 401(k) plan with a safe harbor match for all of their employees. In addition, on an annual basis they would make a separate uniform profit sharing contribution for all of the employees to allow for the doctors to receive the maximum allowable benefit under the plan. Under this plan arrangement the Doctors were able to receive a benefit totaling $700,000 and were required to provide all of their staff an additional $300,000 in benefits.
Using a Cash Balance plan along with their current 401(k) plan, we were able to allow the Doctors to receive a benefit totaling $1,400,000. Additionally, we added another 401(k) plan for the sole benefit of any nurses employed by the practice. Using this model we were able to keep the staff benefit equal to what they were paying previously. The result was an additional $700,000 in retirement benefits for the doctors, netting a tax savings to the practice of $245,000.
A special note to also tell you how much I have especially enjoyed my working relationship with my plan administrator. She is exceedingly responsive, very bright and always went well above/beyond to assist me when needed. Her guidance through our first 401(k) plan audit and everything in-between has been spot on.