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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BLOG: Small Business Retirement Plan Comparison
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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Justin A. Goodbread, CFP®, CEPA,
CVGA, is a nationally recognized financial planner, business
educator, wealth manager, author, speaker, and entrepreneur. He has
20+ years of experience teaching small business owners how to
start, buy, grow, and sell businesses. He is a multi-year recipient
of the Investopedia Top 100 Advisor and 2018 Exit Planning
Institute’s Exit Planner Leader of the Year.
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