At Lamberson Knight Wealth Management we are guided by a set of core principles firmly in line with the purpose of 401k plans. Whether you are a small business looking to start up a new 401k plan or a large business exploring other options, we are centered on helping your participants achieve financial security and realize the retirement they promised themselves. Your plan is the center of our mission and these values drive everything we do.
We partner with several well-known and high rated providers giving you multiple options from which to choose. Together, we can help you understand what it means to be a fiduciary and what it takes to keep the plan compliant. Along with our providers we will help you:
- Select the program that best fits your needs.
- Understand pricing and compensation modeling.
- Illustrate, advise and monitor investment options done by the provider, our financial advisor and portfolio manager.
- Compare providers.
- Partner with the plan administrator.
- Build and deliver a customized retirement plan proposal.
Upon you decision and approval, an implementation manager will guide your plan sponsor and associates through the installation and enrollment process of the new plan. We will provide an annual contract review designed to help you carry out one of your fiduciary responsibilities to monitor the investment options selected under your plan.
How do you define a successful 401k plan?
1. Employees are making good investment decisions
2. Employees are saving enough
3. Employers are making good decisions on which investments to offer
One of the advantages of working with Lamberson Knight is constant monitoring and review of all investments within the plan by one of our registered financial advisors and portfolio managers. We can also offer personal one on one advise for not only investments held inside the plan, but managed portfolios and financial solutions for each individual participant’s outside assets as well.
Cash Balance Plans
Cash Balance Solutions for Small Business Owners, CPAs, Doctors, Lawyers and Professional Firms
A cash balance Plan is an increasingly popular tax qualified retirement plan that combines the tax advantages and high contribution amount of a defined benefit plan with the look, feel and portability of a defined contribution plan. Cash Balance regulations issued in 2010 and 2014 have made these plans even more flexible and easier to administer, making them increasingly popular choice for successful business owners.
Tax deductions are hard to come by, especially those that directly reduce ordinary income dollar for dollar. Cash Balance Plans have the same effect as a deduction that reduces ordinary income dollar for dollar! With combined Federal and State income tax as high as 45%, the tax savings can be very significant. Cash Balance Plans are a part of a group of plans called "qualified plans," indicating their tax favored status with the IRS. Tax advisors generally agree that these plans should be funded to their maximum before other tax-efficient strategies are explored,
Our experience suggests increasing interest in cash balance plans from a range of professional-dominated organizations and small businesses. These companies are looking for ways to maximize retirement contributions for their employees beyond the 401(k). Candidates typically include:
- Professionals seeking to contribute more than $45,000 to their retirement plan,
- Highly profitable companies of varying sizes,
- Owners who are approaching retirement and are seeking ways to maximize contributions accelerate their savings.
- Professionals groups (doctors, CPAs, lawyers),
- Companies that have demonstrated consistent profit patterns
Cash balance plans use unallocated funding with defined benefit (DB) plan funding limits, which means more savings potential. Plus, cash balance plans allow the opportunity for plan sponsors to:
• Provide key employees the opportunity to save more than $59,0001 a year
• Decrease tax liability
• Enjoy easier portability of contributions than traditional DB plans
• Educate employees more easily than traditional DB plans
• Enjoy ERISA protection on retirement plan account assets
Cash Balance Plans can be offered along with other plans as well. An employer can offer a combination of qualified retirement plans in order to produce a larger contribution amount. Just as a Profit Sharing feature can be added to a 401(k) plan, an employer can add a Cash Balance Plan as well. In fact, a 401(k) plan in combination with a Cash Balance Plan can be the ideal plan-design for many companies and partnerships.
As in our 401k products, Lamberson Knight, along with our partners can guide you every step of the way. Please feel free to contact us any time for further information, suitability, or to discuss if this plan may be appropriate for your organization.