Change of Plans: Simple IRA to 401k

Change of Plans? SIMPLE IRA to 401(k)

A SIMPLE IRA can be a great low cost plan for small businesses with less than 100 employees..

It provides the opportunity for salary deferrals along with an employer match. Additionally, it is not subject to non-discrimination or top-heavy testing. However, for some businesses it may be time to evaluate a more robust plan. If you are nearing 100 employees or simply would like additional options and flexibility, a profit sharing plan with a 401(k) provision may be a better option for your business.

Consider the following:

  • Would you or your employees like the opportunity to contribute more salary deferrals?
  • Are you interested in making discretionary employer contributions?
  • Would you prefer more flexibility regarding participant eligibility, vesting requirements, or loan provisions?
  • Would a Roth savings option be appealing to you or your employees?

These questions address a few reasons why it may be prudent to consider a 401(k) for your business. There are various 401(k) providers and plan options. As a result, a diligent process needs to be followed in order to ensure the right plan for you and your employees is selected. Discuss this opportunity with your Hilliard Lyons Financial Consultant in order to determine if a change of plans makes sense for you.

Contact your Wealth Advisor for more details.

J.J.B. Hilliard, W.L. Lyons, LLC | Member NYSE, FINRA, & SIPC

Share |

Have A Question About This Topic?

Thank you! Oops!

Related Contents

Should You Tap Retirement Savings to Fund College?

Should You Tap Retirement Savings to Fund College?

There are three things to consider before dipping into retirement savings to pay for college.

Social Security Benefits: How Much Will I Receive

Social Security Benefits: How Much Will I Receive

Calculating your potential Social Security benefit is a three-step process.

Inflation & Retirement

Inflation & Retirement

Estimate how much income may be needed at retirement to maintain your standard of living.