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Financially Simple Bizcast

The Financially Simple podcast is your one-stop resource for small business owners. Gain unique insights into growing, refining, and selling businesses. You will hear ways business owners have reduced their tax liabilities, increased their income, improved office morale, saved for the retirement of their dreams, and more.
Host Justin Goodbread is a serial entrepreneur, award-winning CFP® (Certified Financial Planning professional), CEPA® (Certified Exit Planning Advisor), and CVGA® (Certified Value Growth Advisor) with years of experience guiding business owners from start to exit in their business.

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.