1 / 12

KPHA MEETING

KPHA MEETING. RETIREMENT PLANS 1/16/14 BRUCE A LAFFERRE. KPHA. RETIREMENT PLANS COMPARISON 1/16/2014 BRUCE A LAFFERRE, CHFC, MSFS, MBA PHARMACISTS MUTUAL COMPANY. SIMPLE IRA. SALARY DEFERRAL PLAN—OFFERS EMPLOYEES CHANCE TO CONTRIBUTE $12K (+$2500 > AGE 50) IN 2014

isabel
Download Presentation

KPHA MEETING

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. KPHA MEETING RETIREMENT PLANS 1/16/14 BRUCE A LAFFERRE

  2. KPHA • RETIREMENT PLANS COMPARISON • 1/16/2014 • BRUCE A LAFFERRE, CHFC, MSFS, MBA • PHARMACISTS MUTUAL COMPANY

  3. SIMPLE IRA • SALARY DEFERRAL PLAN—OFFERS EMPLOYEES CHANCE TO CONTRIBUTE $12K (+$2500 > AGE 50) IN 2014 • REQUIRES $ FOR $ MATCH BY KPHA UPTO 3% OF EMPLOYEE SALARY FOR 2014 • REQUIRES NO SET UP FEE • REQUIRES NO ANNUAL 5500 REPORT TO IRS • KPHA CHOOSES A FIDUCIARY TO MANAGE THE CONTRIBUTIONS • PARTICIPANTS MAYBE OFFERED A VARIETY OF INVESTMENT ALTERNATIVES

  4. DOES NOT PROVIDE LOAN PROVISIONS TO PLAN PARTICIPANTS • ALL CONTRIBUTIONS ARE IMMEDIATELY VESTED • PARTICIPANTS MAY ACCESS ACCOUNT FUNDS UPON RETIREMENT, TERMINATION OF EMPLOYMENT, OR DEATH • ADDITIONAL CONTRIBUTIONS BY KPHA ARE NOT ALLOWED • ADDITIONAL CONTRIBUTIONS BY EMPLOYEES BEYOND TAX LIMITS ARE NOT ALLOWED

  5. 401K PLAN • PLAN REQUIRES AN ADOPTION AGREEMENT FILED WITH IRS • PLAN REQUIRES AN ANNUAL 5500 REPORT FILED WITH IRS BY AN ERISA ADMINISTRATOR • PLAN OFFERS MORE FLEXIBILITY • SALARY DEFERRAL PORTION THAT ALLOWS EMPLOYEES TO CONTRIBUTE UP TO $17500 AND ($5500 > AGE 50) IN 2014 • MATCHING CONTRIBUTIONS BY KPHA ARE FLEXIBLE—SUCH AS $ FOR $ UP TO 3% OF SALARY AND $.50 FOR $ UP FROM 3% UP TO 5% OF SALARY

  6. KPHA CAN ELECT TO MAKE ADDITIONAL CONTRIBUTIONS TO PLAN = TO LESSER OF EMPLOYEE SALARY OF $50K FOR 2014 • VESTING SCHEDULE FOR KPHA CONTRIBUTIONS SET BY KPHA • KPHA SELECTS A PLAN FIDUCIARY TO MANAGE THE PLAN ASSETS • KPHA SELECTS THE INVESTMENT OPTIONS • PLAN LOANS MAYBE AVAILABLE

  7. DEVELOPMENTS • TAX DEFERRED OPPORTUNITIES CREATED BY ERISA LEGISLATION SEVERAL DECADES AGO FOR ORGANIZATIONS TO CREATE RETIREMENT PLANS • PROVIDE OPPORTUNITY TO OFFER TAX DEFERRAL OPPORTUNITY FOR EMPLOYEE TO SAVE FOR RETIREMENT • PROVIDE IMPORTANT MATCHING INCENTIVES FOR EMPLOYEES TO CONSIDER • MAJORITY OF WORKERS TODAY ARE NOT SAVING AND MAYNOT BE PARTICIPATING IN ANYTYPE OF RETIREMENT PROGRAM

  8. DEFINED BENEFIT PENSION PLANS ARE BEING REPLACED BY SALARY DEFERRAL PLANS (401K AND SIMPLE IRA) • PERFORMANCE RESPONSIBILITY IS BEING TRANSFERRED FROM EMPLOYER TO EMPLOYEE • EMPLOYEE NOW DECIDES HOW MUCH AND WHEN TO INVEST IN THE PLAN • MAY HAVE SOME CHOICES OF INVESTMENT OPTIONS • PLAN ASSETS ARE PROTECTED UNDER FEDERAL LAWS

  9. RETIREMENT FUNDS MAY NOT COME INTO CONSIDERATION FOR APPLICATION FOR EDUCATIONAL LOANS FOR CHILDREN • PLAN ASSETS MAYBE AVAILABLE WHEN EMPLOYEE TERMINATES TO TRANSER TO ANOTHER PLAN • PLAN EARNINGS AND CONTRIBUTIONS ARE TAX DEFERRED • TREMENDOUS GROWTH OPPORTUNITIES OVER THE LONG TERM (TIME VALUE OF MONEY AND COMPOUNDING INTEREST) • TAX DEDUCTIONS FOR EMPLOYERS FOR PAYMENTS

  10. FEDERAL GUIDELINES • ADOPT A WRITTEN PLAN AGREEMENT • ARRANGE A TRUST FUND FOR PLAN ASSETS • DEVELOP A RECORD KEEPING SYSTEM • PROVIDE PLAN INFORMATION FOR EMPLOYEES • CONDUCT PLAN ENROLLMENT MEETINGS • MONITOR PLAN PERFORMANCE • MONITOR PLAN SERVICE PROVIDER • MAKE CONTRIBUTION DECISIONS FOR EMPLOYER • ESTABLISH PROGRAM FOR PARTICIPANT COMPLAINTS

  11. DEVELOP THE ANNUAL PLAN SUMMARY DESCRIPTION FOR EACH PARTICIPANT • COMPLETE REQUIRED REPORTS AND PAY NECESSARY FEES • PLAN ADMINISTRATOR SURETY BOND MAYBE REQUIRED • ADJUST PLAN AS NECESSARY

  12. KPHA CONSIDERATIONS • PHMIC HAS BEEN IN EXISTANCE SINCE 1909. • ONE OF 15 INSURANCE CARRIERS THAT HAVE MAINTAINED AN “A” RATING FROM AM BEST COMPANY FOR THE PAST 75 YEARS • OFFER KPHA A VARIETY OF OPTIONS FOR PLAN FUND INVESTMENTS • SPECIAL ARRANGEMENT WITH PMG • ME

More Related