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Presentation by:
Steve Scott
Managing Partner
Retirement Solution Group, LLC
Qualified Retirement Plan Solutions
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Agenda
 Who Is RSG?
 Idea
 Case Studies
 Next Steps
3 |
Who Is RSG?
4 |
Retirement Solution Group, LLC
This is our CORE business.
 Retirement Plan consulting firm
 Administers over 500 pla...
5 |
Idea
6 |
The Idea
 While a “Selling Event” probably will be a very significant financial event for a business owner,
will it b...
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Case Studies
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Case Study: Optimizing Profit Sharing Allocations
 Situation: Local dentist sponsored a profit sharing plan with a st...
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Case Study: Defined Benefit Plan – Retention
 Situation: Private school was looking for a way to reward loyalty and
s...
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Case Study: Retirement Plans – Overlay Strategy
 Situation: Three person doctor’s office with one owner driving reve...
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Case Study: Designed Based “Carve-Out”
 Situation: Endodontist group had Money Purchase Plan, which they
maximized t...
12 |
Summary
 Who Is RSG?
 Core Competency, Institutional Partnership Experience
 Case Studies
 Substantial, and Uniqu...
13 |
So What?
You can Fix These Problems By:
 Having a “Transaction Plan”
 Ensure Financials are “In Order”
 Look for C...
14 |
RSG Support Team
RSG is always available, 866-352-7731
1. Steve Scott, Managing Partner x 210
2. Scott Emering, Partn...
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Plan Design Solutions

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Plan Design Solutions

  1. 1. 1 | Presentation by: Steve Scott Managing Partner Retirement Solution Group, LLC Qualified Retirement Plan Solutions
  2. 2. 2 | Agenda  Who Is RSG?  Idea  Case Studies  Next Steps
  3. 3. 3 | Who Is RSG?
  4. 4. 4 | Retirement Solution Group, LLC This is our CORE business.  Retirement Plan consulting firm  Administers over 500 plans  Participant Services for more than 9,000 participants  2 federally enrolled actuaries on staff  2 on-staff enrollment & education specialists 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 Retirement Solution Group 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.
  5. 5. 5 | Idea
  6. 6. 6 | 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…
  7. 7. 7 | Case Studies
  8. 8. 8 | 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 ‘s contributions at the IRS individual aggregate limit ($50,000 in 2012) would have 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. Retirement Solution Group
  9. 9. 9 | 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). Retirement Solution Group
  10. 10. 10 | 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. Retirement Solution Group
  11. 11. 11 | 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: Endodontists 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. Retirement Solution Group
  12. 12. 12 | 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 & Beauport Financial  Consultative vs. Transactional – Many factors can better or ruin a “Plan Design”
  13. 13. 13 | So What? You can Fix These Problems By:  Having 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? The Number of Service Businesses Scheduled for a Transaction Event Creates a “Problem” Retirement Solution Group
  14. 14. 14 | 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, Sr. Consultant x203 4. Ed Emering, Sr. Consultant & 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 x200 9. Mark Roberts, Administrator x160 10. Mary Urlich, Administrator (Participant Transaction Specialist) x120 11. Wendi Holman, Administrator x205 12. Kim Knapp, Administrator x202 13. Kelly Dunne, Administrative Support x300 Retirement Solution Group

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