This article applies primarily to ABP client service partners who are accountants and financial advisors. Do you have clients who don't currently sponsor a tax-qualified retirement plan but contemplate doing so? There is a seldom-used federal tax credit that may help those businesses recover all or a portion of plan start-up costs and other administrative expenses.
Eligible Plans: The start-up plans tax credit is available to businesses that establish a new SEP, SIMPLE IRA, 401(k), pension, or other qualified plan.
Safe harbor 401(k) plans have become a very popular plan design over the last decade. By providing an opportunity for company principals to maximize deferrals and also providing a minimum level of savings for all participants, the Safe Harbor design is attractive to both employers and employees.
If you have discussed the idea of a Safe Harbor 401(k) plan during recent annual planning with your clients, you need to be aware of an important date. October 1st is the latest date that a client can adopt Safe Harbor provisions to be effective for the 2016 calendar year...