If you own a small business (such as a medical practice), many retirement plan alternatives are available to assist you and your eligible employees with retirement planning. To make an informed decision on which plan is right for your practice, review the differences carefully before choosing.
When meeting with pre-retirees as well as current retirees, one of the most common areas of concern, apprehension, and (at times) outright fear, is whether they will run out of money during retirement.
The state of the economy is due to several factors including residential real estate, credit-default swaps, and the price of oil along with other increasing commodity prices. Although no two downturns or recessions are ever identical, there is strong historical support for maintaining a long-term view of your portfolio.
The Safe Harbor 401(k) plan allows for greater tax-deferred savings than the SIMPLE IRA and avoids the bulk of the administrative expenses of the traditional 401(k). Participants are permitted to defer up to $15,500 for 2007, with an additional $5,000 catch-up available to participants age 50 and over. Adding a cross-tested plan could provide larger proportionate contributions to those closer to retirement.