Retirement Plan

Case Study

Retirement Plan Questions.

Unsure of which plan was the best fit for their company.

Smith Schafer Approach

A client came to us looking for help in establishing a RETIREMENT PLAN for his business. His company has 40 part-time employees and only three full-time employees, two of which are he and his wife. He asked about the company’s best retirement plan options and himself as an employee saving for retirement.

We discussed a few different retirement plan options with our client. The 401(k) plan is the most well-known, but it is also the most costly since there are additional administrative requirements to set up and maintain the plan. A SEP plan is much easier to set up and operate, and the administrative costs are low, but only the employer can contribute to a SEP plan. Also, the employer is required to contribute equally to all employees.

After some discussion, we recommended this business establish a SIMPLE plan. SIMPLE plans do not have the start-up and operating costs of a conventional retirement plan, so they are more economical for a small business. These plans allow employees to contribute, shifting the company’s responsibility for retirement planning to the employee. The company is required to make contributions to a SIMPLE plan, but there are two options available:

  • Match employee contributions up to 3 percent
  • Make a nonelective 2 percent contribution for all employees

Results

Our client agreed with our recommendation to start a SIMPLE plan. He felt this gave employees, including him, the most flexibility in saving for retirement and the most cost-effective solution for his business.

Why Clients Choose Us

“We have worked with Smith Schafer for over 45 years. They have been great to work with, from wonderful administrative support, tax staff, and CPAs. They have supported us for years with our financials and mergers/acquisitions. Always there to help!”

 - Washburn McReavy Funeral Chapels

Our service is always exceptional and never have to second guess the answers.

 - EnergyPrint, Inc.

Smith Schafer has provided second to none service and value to my business and personal accounts for over 30 years. Their expertise and knowledge are unmatched by any other accounting firm I have encountered over all these years.

The relationship we have built over the years with the staff at Smith Schafer & Associates is one that can never be replaced. They are quick with helping us figure anything out, always willing to pick up the phone and walk us through any problem we are having. Also they are just all so friendly and kind!

I have worked with Jason Boynton for several years. He has consistently provided exceptional service and advice always delivered in a timely, pleasant manner.

Smith Schafer always makes everything go smoothly. They were recommended to us by our community bank. We have been using their services for many years for our small business and personal taxes. We always feel well taken care of and that we are receiving the best advice, direction, information and tax preparation."

- The Dog Perk Corporation

Smith Schafer always provides great information for our business. They are thorough with our accounting and financial planning. We have leaned heavily on them with an interpretation of the PPP Loan and COVID-19 planning. They have been instrumental in our success and are always very knowledgeable and quick to respond to any of our questions."

Smith Schafer has provided second to none service and value to my business and personal accounts for over 30 years. Their expertise and knowledge are unmatched by any other accounting firm I have encountered over all these years."

The relationship we have built over the years with the staff at Smith Schafer is one that can never be replaced. They are quick with helping us figure anything out, always willing to pick up the phone and walk us through any problem we are having. Also they are just all so friendly and kind!"

We love our CPA team at Smith Schafer. They have helped us navigate many personal and business decisions."

Smith Schafer is very dedicated to their clients and always has their best interests in mind. They are very knowledgeable and thinking ahead to what the clients may be needing in the future. We would highly recommend Smith Schafer to our family and friends."

"Always fast, great service and questions answered. Love the people I work with at Smith Schafer. We've been there so long, it's like working with family."

- MotoProz, Inc.

"Smith Schafer is always responsive and in the know about what is important for me and my business. The team is responsive and professional with all my interactions. Very customer-focused."

- Custom Communication

"The people at Smith Schafer always take great care of me. They are so knowledgeable and provide great advice and support."

- Sound and Media Solutions, Inc.

 

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