Feb 15, 2018
The Real Deal About Retirement Plans
With Melissa Terito, CPA
In the 8th episode of the Confident Wealth Podcast, Bill Bush
and Pete Bush talk with Melissa Terito, a partner and CPA at the
accounting and business advisement firm Faulk & Winkler. She
oversees their third party administrative practice (TPA) – branded
as Sentinel Pension & Payroll. They share valuable information
about the benefits that business owners have in setting up
retirement plans for their employees. They also dispel a few
misconceptions and assumptions that have been applied to retirement
plans as well.
Time Stamped Show Notes:
- 00:35 – Bill Bush and Pete Bush introduce Melissa Terito and
she shares her professional life.
- 01:33 – Businesses establish retirements plans because
their employees are asking for this service and it makes for a
great tax deduction.
- 03:15 – Melissa will run a contribution projection so that the
business owner can see how much their new retirement plan will cost
them and save them.
- 03:31 – Faulk & Winkler offers multiple retirement plans
that include medical groups and a 2000-particpant union plan.
- 04:20 – Melissa does consulting on simple IRAs,
- 05:00 – Advantages to the employee for participating in
retirement plans: it is easy, it is tax deductible, it grows tax
deferred, and it gives them a knowledgeable advisor.
- 07:44 – The profit sharing contribution doesn’t need to
be funded until the company files their tax return.
- 09:16 – The new plan tax credit can offset some start-up
- 10:18 – The biggest problems that Melissa sees includes people
not following the retirement plan document and assuming that
part-time employees can’t participate in a 401K plan.
- 12:37 – Faulk & Winkler educates their customers on an
- 13:12 – Full-time employees that drop down to part-time
employees can’t be kicked out of their retirement plan.
- 13:57 – Options that clients need to make decisions on include:
eligibility and do you want to be a safe-harbor plan.
- 16:44 – Trends that Melissa sees in terms of changing plans is
making it possible to do during every pay roll period.
- 18:04 – Steps that a plan sponsor can make in giving themselves
confidence that the plan is running smoothly for them: check that
they have a fiduciary folder, discussion with an advisor, and 401K
vs. Roth IRA.
- 20:50 – The closing credits
3 Key Points:
- Retirement plans offer advantages to employees such as being
easy to set up, being tax deductible, growing tax deferred, and
providing knowledgeable advisement.
- The profit sharing contribution is one of the few accrued
deductions that a company can take on their tax return.
- Full-time employees that become part-time employees can’t be
pushed out of their retirement plan.
- “Expensive is relative…there are fees with
setting up anything.” – Melissa Terito.
- “If your business gets audited, there is a
chance that they are going to take a look at the simple IRA at some
point.” – Melissa Terito
- “A lot of people don’t think that part-time
employees can participate in a 401K plan.” – Melissa