Sep 19, 2019
In episode 192 of Financially Simple, Justin continues his discussion with Jennifer McConnell of July Business Services about 401(k) funds.
There are two specific provisions of the 401(k) that are worth a closer look: Safe Harbor and Profit Sharing. Justin and Jennifer look at the Safe Harbor and Profit Sharing provisions and consider the pros and cons of each for a Small Business Owner.
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01:04 - Exploring the Safe Harbor and Profit Sharing Provisions of a 401(k)
01:19 - Who Can Participate in a 401(k)
02:31 - Can Minors Participate in a 401(k)
03:09 - Do You Need to Contribute to Part-Time Employees
04:03 - What is Safe Harbor 401(k)
05:25 - SIMPLE Comparison
06:02 - Why Use a Safe Harbor 401(k)
07:43 - Limitations for Small Business Owners
08:41 - How Profit Sharing Works
10:57 - How Much do Business Owners Benefit Compared to Employees
13:51 - What is HCE and Why Does it Matter
15:12 - Who Tests the 401(k)
15:59 - How Much of the Money in the Plan Belongs to the Employee
17:14 - Wrap Up
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Host Justin Goodbread, Certified Financial Planner, Certified Exit Planning Advisor, Certified Value Growth Advisor. He is a serial entrepreneur, author, speaker, educator, Investopedia Top 100 advisor, and business strategist with over 20 years of experience. Justin owns Heritage Investors LLC, a registered investment adviser with the State of Tennessee. Heritage Investors only transacts business in states where it is properly registered or is excluded or exempted from registration requirements. This material is for general information only and is not intended to provide specific advice or recommendations for individuals. To determine what is appropriate for you, please consult a qualified professional. The Financially Simple podcast provides information, guidance, and support to Small Businesses in the United States.