Today More than Ever, Plan Sponsors Need the Power of Design

Owners of small and midsized organizations today face a dilemma as they prepare for retirement. They need to find a way to make larger contributions to their tax-qualified retirement plan to fund their future once they retire. However, the cost of contributions to cover other eligible employees can make traditional retirement plans seem unaffordable to some businesses, especially in this difficult economic environment.

Fortunately businesses can customize tax-qualified retirement plans to maximize contributions and benefits for owners while controlling the cost of covering other eligible employees through creative plan design. 

Some of these techniques include the following types of plan designs:

• DB/DC combo plans

• cash balance plans

• class based profit sharing plans

Adding a cash balance plan to leverage a defined benefit/defined contribution combined plan design offers the possibility of increasing personal contributions by as much as $150,000.This strategy can be accomplished for other businesses as well if they consider adopting a defined benefit pension plan in addition to the 401(k) profit sharing plan, also known a DB/DC combo plan. The allowable contributions under this combination of plans can be significantly higher than the allowable contributions under the 401(k) profit sharing plan alone.

RSM McGladrey can help you target the ever growing Cash Balance and DB/DC Combo plan marketplace. And, we can provide a complementary illustration for your clients who might benefit from this plan design approach.

Contact RSM McGladrey today to get the DB/DC combo support you need.

• Click here to view a copy of our white paper, The Power of Plan Design.

• View a recording of our recent webinar on this topic by visiting our event archive at www.RightFitRetirementPartner.com.

• Click here to request a personal plan design coaching session. We will schedule a call with you to learn how these techniques can create additional client opportunities for your practice. During this discussion, we can help you with sample call language, sample prospecting letters and emails, sample illustrations and also help to begin building an actionable pipeline of specific DB/DC combo targets. We can also discuss an overall retirement plan marketing strategy and how to best leverage the consulting services of RSM McGladrey.

RSM McGladrey Retirement Resources is a national non-producing TPA with the professional staff and resources to serve virtually all types of retirement plans for any organization in any industry. We provide important technical and plan design experience while giving advisors the flexibility to select appropriate investment options from recordkeepers who best meet their client needs.