4. Retirement Solution Group, LLC
All decisions are made in the best interest of participants per ERISA. We adhere to the DOL
guidelines on participant reporting and ensure that full disclosure be present throughout.
This is our CORE business.
Retirement Plan consulting firm
Administers over 450 plans
Co-Fiduciary on more than $225,000,000
Participant Services for more than 8000 participants
2 federally enrolled actuaries on staff
2 on-staff enrollment & education support available (Spanish speaking available)
We are fully independent
Regional offices in Chicago, New England and Florida (business in 22 states)
Members of NIPA, ASPA and CFDD
99% (+) of firm revenue comes from qualified retirement plan related business
Strategic Retirement Plan Consulting Partner to Infinity Financial Concepts
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5. Definition of a “Fiduciary”
You are a fiduciary of an employee benefit plan if you meet any one of the following
tests:
You exercise discretionary authority or control over plan assets or plan management - “Functional
Fiduciary”
You are specifically identified in the written documents of a plan as a “Named Fiduciary”
You have discretionary responsibility in the administration of the plan.
You manage the plan or its assets or render investment advice for a fee.
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7. The Idea
While a “Selling Event” probably will be a very significant financial event for a business owner, will it be
enough?
Take monies out of business in a strategic manner prior to transaction event
Create a customized solution
Defined Contribution (skewed to business owner using various formulas, most notably new comp)
Defined Benefit (Largest top-line deduction often available to owners but needs to be managed NOT
sold!)
Unique issues around dental company transactions…
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9. Case Study: Optimizing Profit Sharing Allocations
Situation: Local dentist sponsored a profit sharing plan with a standard pro-
rata allocation (% of pay) set-up by his accountant in the late 80’s .
Complication: Maximizing the dentist contributions at the IRS individual
aggregate limit ($50,000 in 2012) would required a 20% of pay contribution
to all eligible employees.
Result: RSG redesigned the Plan using a “cross-tested” profit sharing
contribution reducing the required contribution to the staff to 5% of pay.
Client saved $58,000 (25% of total contribution) in year 1.
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10. Case Study: Defined Benefit Plan – Retention
Situation: Private school, was looking for a way to reward loyalty and
service through a retirement plan program.
Complication: IRS limits the ability to reward service in defined
contribution plans through eligibility provisions (maximum of one year and
two entry dates) and a maximum allowable vesting schedule (six year graded
or three year cliff vesting).
Result: RSG implemented a defined benefit plan with a benefit formula
structured to pay and years of service – 1% of pay times years of service up
to 25 (maximum benefit is 25% of pay with 25 years of service).
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11. Case Study: Retirement Plans – Overlay Strategy
Situation: Three person doctor’s office with one owner driving revenue and
making significant monies.
Complication: Asked his “advisor” how much he could put in to max out
the tax deduction as his earnings were more than $1mm. He was told
$11,000 was his max contribution.
Result: RSG had the client terminate the SIMPLE prior to the calendar year
starting anew and implemented a DC/DB combo plan driven by DB
deductions. He is scheduled to receive $242,000 (approx.) in 2011 tax
deduction, and 92% of total benefit.
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12. Case Study: Designed Based “Carve-Out”
Situation: Endodontist group had Money Purchase Plan, which they
maximized to the DC limit, and had to give a flat allocation to all staff.
Complication: Endodontist make a lot of money, and they needed a bigger
deduction. Plus, they wanted to give a fair, but not flat, staff contribution.
Result: By implementing a “Carve-Out” plan design solution we offer the
senior doctors an additional $165,000 deduction via Cash Balance Plan. The
401(k)/Profit Sharing Plan is both cross tested for group allocation and for
coverage testing, and lowered their average staff contribution from 10% to
7.5%. No staff or non-owners are regular participants in the Cash Balance
Plan. In addition, the Cash Balance Plan is individually allocated so that
each doctor can decide appropriate allocation level. Note 40% coverage.
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13. Summary
Who Is RSG?
Core Competency, Institutional Partnership Experience
Case Studies
Substantial, and Unique, Value to Business Owner
Idea
Play Defense – Create Substantial Accounts to “Compliment Sale”
Play Offense – Create A Plan With Client & RJA
Consultative vs. Transactional – Many factors can better or ruin a “Plan
Design”
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14. So What?
The Number of Service Businesses Scheduled for a
Transaction Event Creates a “Problem”
You can Fix These Problems By:
Have a “Transaction Plan”
Ensure Financials are “In Order”
Look for Creative Tax Strategies Today to Supplement Tomorrows “Pay Day”
Work With Specialists
Next Steps:
Analyze Situation
Do An Analysis?
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15. RSG Support Team
RSG is always available, 866-352-7731
1. Steve Scott, Managing Partner x 210
2. Scott Emering, Partner x110
3. Joyce Bellevue, Partner x203
4. Ed Emering, Partner/FSA x140
5. Julie Yanez, Sr. Pension Consultant x150
6. Christie Cheng, Education & Relationship Manager (Bi-Lingual) x310
7. Elvia Sanchez, Education & Relationship Manager (Bi-Lingual) x410
8. Megan Dunne, Associate Relationship Manager x240
9. Mark Roberts, Administrator x160
10. Mary Urlich, Administrator (Participant Transaction Specialist) x120
11. Wendi Holman, Administrator x205
12. Kim Knapp, Administrator x202
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