Pension and Retirement Plan Services

We offer a totally independent - fiduciary only - recommendation on plans, types, structures and actuaries to use

There is no one "Right Plan" Every plans has it's positives and negatives. Our goal is to discover you companies goals, corporate structure, and exit strategy. Once we understand your goals we may structure either one plan or a combination of different plans.

Defined Contribution

You decide on how much you will put in annually.

  • SIMPLE

  • 401-K

  • Profit Sharing Plan

  • Must have a formal plan

    • You can have us draft the plan or you can use a prototype plan pre-approved by the IRS

  • You decide on how much to put in

  • Under a Profit Sharing Plan you can set vesting

  • Under a 401-K and Profit Sharing Plan you can set up ability to loan against

  • Under a 401-K you can set up a ROTH Option

  • This is a non-discrimination plan - must include everyone

  • 401-Ks have mandatory contributions by the company

  • Companies and employees contribution incur FICA taxes

  • Low limits on contributions.

    • Example in 2024 you can only contribute $23,000

  • You can set up self-directed accounts to allow you to invest where-ever you want.

    • This is a requires a customized plan

Defined Benefit

You decide on how much you want to get as a pension plan at a later time

  • Standard Pension

  • Cash Balance Plan

  • 412i Plan

  • Must have a formal plan

    • You can have us draft the plan or you can use a prototype plan pre-approved by the IRS

  • You decide on what you want in income at a certain period of time

  • Under a Defined Benefit Plan you can set Vesting as long as 6 years

  • Under a Defined Benefit Plan you can take loans

  • Under a Defined Benefit Plan you can set up rollouts to ROTH conversions

  • Companies contributions are 100% FICA tax free

  • You can contribute up to $275,000 in a Standard DB plan

  • You can contribute an unlimited amount to a Cash Balance plan to develop a $300,000 income (changes by the year)

  • You can use tax deductible life insurance

Non-Qualified

You decide on the contribution and even the payment

  • Non-Qualified Deferred Comp

  • Phantom Stock

  • Buy-sell funded plan

  • Key Person funded plan

  • Must have a formal plan

    • Each plan must be created individually

  • You decide on how much you want to contribute

  • You decide on when the funds come out

  • Fully Discriminatory plan

    • You decide who you want to include in the plan

  • Funds can grow without tax

  • Funds can be paid out at any age without the Minimum 59.5 limit

  • There are no Required Minimum Distributions like a DC or DB plan

  • Funds can be invested in any vehicle including real estate

  • Funds are FICA tax free when invested

  • Life insurance can be purchased with the plan

The Truth Behind 401-Ks

Most companies believe the only method to offering a retirement plan is to offer a 401-K

While 401-Ks have their place - most companies have lost sight of other types of plans that could benefit both executives and employees - but better

What we like about 401-K's

  • Quick and easy to set up

  • Employees can enroll easily and can auto save from payroll

  • For those employees that do not understand investments, most 401-K providers offer simple tools to structure plans

  • Note we do offer the set up, management and employee education on 401-Ks as well as a Free Emoney Account for Employees to track their financial futures. See below as to our experience with adoption rates

What we don't like about 401-Ks

  • Contributions from both the company and the employee are still subjected to the FICA tax costing a total of 15.3% collectively or 7.65% to the company and 7.65% to the employee. There is no deduction for the cost of FICA to the employee and almost everyone will pay tax on Social Security. This makes the contribution to a 401-K less effective than most of the big promoters disclose.

    • NOTE: Social Security is triple taxed (The FICA tax is 7.65% which is non deductible which means employees pay tax on the tax. When someone retires, they will most likely pay tax on their Social Security or at least 85% of it, which ends up being 3x taxation.

  • Investment options are limited to mutual funds and or ETFs and usually limited from between 25-30 options. Considering there are 40,000 mutual funds and ETFs and another 30,000 stocks and up to 10,000 bonds - 25-30 options limits the ability to invest properly. The Employee does not get a choice to chose the funds.

  • Within the last 10 years large law firms have been targeting 401-ks and creating lawsuits against company owners for not offering the best in class investment options with low fees.

    • Many companies that offer to set up 401-Ks for low to no cost install their selected funds which they get legal kickbacks from. This sometimes leads to low performing funds with high fees - which leaves company owners with the liability of getting sued.

  • 401-Ks have mandatory contributions from the company. In today's changing employment environment, if an employee leaves in the first few years they take all their funds with them including all the company contributions. Unfortunately, the shortened period of employment in today's world does not allow the company to recoup their investment in short employed staff.

  • 401-Ks have very low adoption rates. Even though we offer a free eMoney account to help employees set up a successful financial future - but the masses are not taking advantage of it. Only about 10% of employees are active in their investment allocation or in setting up their eMoney. This leads us to believe that a 401-K may not be the best option for all companies.

H&H Retirement Design and Management, Inc. is a SEC Registered Investment Advisor. For more information on our firm, please visit SEC.GOV for a full Form ADV II and the form CRS. Any discussion, text, video or communication on this site should not be considered a recommendation, projection, or assumption of any returns, risks, or future projections of any type of investment, process or plan. Any recommendation can only be made by one of our licensed advisors after consideration of acceptance as a client. No initial communications, without formal engagement should be considered a recommendation or suggestion. H&H Tax and Business Advisors, LLC. is a separate, Non-SEC Registered Advisor but is a commonly owned company practicing in tax and business advisory services. Please visit HHTBA.Com for specific services related to H&H Tax and Business Advisors, LLC. Please visit our privacy policy and terms of service for this website. Please visit our Client Relationship Summary (ADV III) and our Firm Brochure (ADV II) This site is published for residents of the United States only. Investment Advisor Representatives of H&H Retirement Design and Management Inc may only conduct business with residents of the states and/or jurisdictions in which they are properly registered. Not all of the products and services referenced on this site may be available in every state and through every advisor listed. One Wealth Map is a holding company for multiple related companies under the One Wealth Map Brand. H&H Retirement Design and Management, Inc, H&H Tax and Business Advisors, LLC, Integrated Wealth Management, LLC, Asset and Income Protections Services, LLC.

Copyright 2024 | All Rights Reserved | One Wealth Map