{"id":28262,"date":"2015-12-09T21:34:39","date_gmt":"2015-12-10T02:34:39","guid":{"rendered":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2015\/12\/business-report-is-a-401k-plan-right-for-you.html"},"modified":"2017-11-08T11:03:06","modified_gmt":"2017-11-08T16:03:06","slug":"business-report-is-a-401k-plan-right-for-you","status":"publish","type":"post","link":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2015\/12\/business-report-is-a-401k-plan-right-for-you\/","title":{"rendered":"Business Report: Is A 401(k) Plan Right For You?"},"content":{"rendered":"
\n
\n\"carissa\n<\/div>\n
\n

Carissa A. Conley is a tax manager at CMJ,
\nLLP in Glens Falls.\n<\/p><\/div>\n<\/div>\n

BY CARISSA A. CONLEY, CPA<\/p>\n

If you own a business, establishing a retirement
\nplan for yourself and your employees offers tax
\nadvantages and other benefits such as attracting
\nand helping to retain high-quality employees in a
\ncompetitive market.<\/p>\n

As an employer, you have three popular options
\nfor a retirement plan – a Simplified Employee Pension
\nPlan (SEP), a Savings Incentive Match Plan for
\nEmployees (SIMPLE), and a 401(k) Plan. While
\neach type of retirement plan has its benefits, the
\n401(k) allows for higher contributions and more
\nflexibility in design to manage business costs and
\ntaxes. In this article, we will focus on 401(k) plans.<\/p>\n

You can design your 401(k) plan to reward
\nemployees, build in incentives to keep employees
\nat the company, or maximize owners’ benefits.
\nYou have the discretion over whether to match
\nemployee deferrals and whether to make discretionary
\nprofit sharing contributions for all
\nparticipants. The contributions you make for your
\nemployees, both matching and profit sharing, are
\ndeductible business expenses.<\/p>\n

A 401(k) plan allows for certain restrictions to
\nensure only your long-term and loyal employees
\nreceive the benefits of participating in the plan.
\nYou can require a certain number of hours and
\nlength of time worked before employees are
\neligible to participate in the plan, and limit the
\nparticipation of certain types of employees and
\nunderage employees.
\nYou can also subject employer contributions
\nto a tiered vesting schedule whereby certain
\nemployer contributions return to the company
\nif an employee leaves after only a year or two of
\nemployment.<\/p>\n

As the business owner, you can maximize your
\nown personal retirement contributions. The elective
\ndeferral limit for 2016 is $18,000 or $24,000 if
\nyou are age 50 or older. If you incorporate profit
\nsharing (with or without a match) into the 401(k)
\nplan, you can contribute up to the maximum total
\nof $53,000, or $59,000 if you are age 50 or older,
\nfor yourself.<\/p>\n

Other benefits of establishing a 401(k) plan
\ninclude being able to contribute to a Roth account
\nwithout any income limits (compared to a Roth
\nIRA that begins to phase out eligibility once your
\n2016 joint income reaches $184,000), a federal tax
\ncredit for the first three years of plan start-up if
\nyou have at least one employee who benefits from
\nthe plan, and business deductions for all plan
\nadministration costs.<\/p>\n

A 401(k) plan generally has higher administrative
\ncosts than SIMPLEs and SEPs because it requires
\nannual filings with the federal government.
\nThe IRS and U.S. Department of Labor require that
\ninformation about the plan and its operations be
\ndisclosed on Form 5500 Annual Return\/Report of
\nEmployee Benefit Plan each year.<\/p>\n

401(k) plans also require annual testing for
\ndiscrimination. A traditional 401(k) plan is tested
\nto ensure that the contributions for employees are
\ncomparable to the contributions made for owners
\nand managers. You can eliminate some of the
\nrequired testing by making the plan a safe harbor
\n401(k) plan and committing to a specific level of
\nannual matching contributions for all employees.<\/p>\n

The costs and benefits of a 401(k) plan for
\nyour business should be compared to the costs
\nand benefits of the other types of retirement plans
\nbefore making the decision of which type of plan
\nto establish.<\/p>\n

Conley is a tax manager at CMJ, LLP in Glens
\nFalls.<\/p>\n","protected":false},"excerpt":{"rendered":"

Carissa A. Conley is a tax manager at CMJ, LLP in Glens Falls. BY CARISSA A. CONLEY, CPA If you own a business, establishing a retirement plan for yourself and your employees offers tax advantages and other benefits such…<\/p>\n","protected":false},"author":86,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[67,91],"class_list":["post-28262","post","type-post","status-publish","format-standard","hentry","category-business-reports","tag-business-reports","tag-glens-falls"],"yoast_head":"\r\nBusiness Report: Is A 401(k) Plan Right For You? - Glens Falls Business Journal<\/title>\r\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\r\n<link rel=\"canonical\" href=\"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2015\/12\/business-report-is-a-401k-plan-right-for-you\/\" \/>\r\n<meta property=\"og:locale\" content=\"en_US\" \/>\r\n<meta property=\"og:type\" content=\"article\" \/>\r\n<meta property=\"og:title\" content=\"Business Report: Is A 401(k) Plan Right For You? - Glens Falls Business Journal\" \/>\r\n<meta property=\"og:description\" content=\"Carissa A. Conley is a tax manager at CMJ, LLP in Glens Falls. BY CARISSA A. CONLEY, CPA If you own a business, establishing a retirement plan for yourself and your employees offers tax advantages and other benefits such...\" \/>\r\n<meta property=\"og:url\" content=\"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2015\/12\/business-report-is-a-401k-plan-right-for-you\/\" \/>\r\n<meta property=\"og:site_name\" content=\"Glens Falls Business Journal\" \/>\r\n<meta property=\"article:published_time\" content=\"2015-12-10T02:34:39+00:00\" \/>\r\n<meta property=\"article:modified_time\" content=\"2017-11-08T16:03:06+00:00\" \/>\r\n<meta property=\"og:image\" content=\"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/wp-content\/uploads\/sites\/109\/2015\/12\/carissa20conley20c.jpg\" \/>\r\n<meta name=\"author\" content=\"Harry Weinhagen\" \/>\r\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\r\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Harry Weinhagen\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\r\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.glensfalls.com\\\/glensfallsbusinessjournal\\\/2015\\\/12\\\/business-report-is-a-401k-plan-right-for-you\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.glensfalls.com\\\/glensfallsbusinessjournal\\\/2015\\\/12\\\/business-report-is-a-401k-plan-right-for-you\\\/\"},\"author\":{\"name\":\"Harry Weinhagen\",\"@id\":\"https:\\\/\\\/www.glensfalls.com\\\/glensfallsbusinessjournal\\\/#\\\/schema\\\/person\\\/3ebe5fa75888180eb780aad61cb877e8\"},\"headline\":\"Business Report: Is A 401(k) Plan Right For You?\",\"datePublished\":\"2015-12-10T02:34:39+00:00\",\"dateModified\":\"2017-11-08T16:03:06+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.glensfalls.com\\\/glensfallsbusinessjournal\\\/2015\\\/12\\\/business-report-is-a-401k-plan-right-for-you\\\/\"},\"wordCount\":558,\"image\":{\"@id\":\"https:\\\/\\\/www.glensfalls.com\\\/glensfallsbusinessjournal\\\/2015\\\/12\\\/business-report-is-a-401k-plan-right-for-you\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.glensfalls.com\\\/glensfallsbusinessjournal\\\/wp-content\\\/uploads\\\/sites\\\/109\\\/2015\\\/12\\\/carissa20conley20c.jpg\",\"keywords\":[\"Business Reports\",\"Glens Falls\"],\"articleSection\":[\"Business Reports\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.glensfalls.com\\\/glensfallsbusinessjournal\\\/2015\\\/12\\\/business-report-is-a-401k-plan-right-for-you\\\/\",\"url\":\"https:\\\/\\\/www.glensfalls.com\\\/glensfallsbusinessjournal\\\/2015\\\/12\\\/business-report-is-a-401k-plan-right-for-you\\\/\",\"name\":\"Business Report: Is A 401(k) Plan Right For You? - Glens Falls Business Journal\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.glensfalls.com\\\/glensfallsbusinessjournal\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.glensfalls.com\\\/glensfallsbusinessjournal\\\/2015\\\/12\\\/business-report-is-a-401k-plan-right-for-you\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.glensfalls.com\\\/glensfallsbusinessjournal\\\/2015\\\/12\\\/business-report-is-a-401k-plan-right-for-you\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.glensfalls.com\\\/glensfallsbusinessjournal\\\/wp-content\\\/uploads\\\/sites\\\/109\\\/2015\\\/12\\\/carissa20conley20c.jpg\",\"datePublished\":\"2015-12-10T02:34:39+00:00\",\"dateModified\":\"2017-11-08T16:03:06+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/www.glensfalls.com\\\/glensfallsbusinessjournal\\\/#\\\/schema\\\/person\\\/3ebe5fa75888180eb780aad61cb877e8\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.glensfalls.com\\\/glensfallsbusinessjournal\\\/2015\\\/12\\\/business-report-is-a-401k-plan-right-for-you\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.glensfalls.com\\\/glensfallsbusinessjournal\\\/2015\\\/12\\\/business-report-is-a-401k-plan-right-for-you\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.glensfalls.com\\\/glensfallsbusinessjournal\\\/2015\\\/12\\\/business-report-is-a-401k-plan-right-for-you\\\/#primaryimage\",\"url\":\"https:\\\/\\\/www.glensfalls.com\\\/glensfallsbusinessjournal\\\/wp-content\\\/uploads\\\/sites\\\/109\\\/2015\\\/12\\\/carissa20conley20c.jpg\",\"contentUrl\":\"https:\\\/\\\/www.glensfalls.com\\\/glensfallsbusinessjournal\\\/wp-content\\\/uploads\\\/sites\\\/109\\\/2015\\\/12\\\/carissa20conley20c.jpg\",\"width\":576,\"height\":875},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.glensfalls.com\\\/glensfallsbusinessjournal\\\/2015\\\/12\\\/business-report-is-a-401k-plan-right-for-you\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.glensfalls.com\\\/glensfallsbusinessjournal\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Business Report: Is A 401(k) Plan Right For You?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.glensfalls.com\\\/glensfallsbusinessjournal\\\/#website\",\"url\":\"https:\\\/\\\/www.glensfalls.com\\\/glensfallsbusinessjournal\\\/\",\"name\":\"Glens Falls Business Journal\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.glensfalls.com\\\/glensfallsbusinessjournal\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.glensfalls.com\\\/glensfallsbusinessjournal\\\/#\\\/schema\\\/person\\\/3ebe5fa75888180eb780aad61cb877e8\",\"name\":\"Harry Weinhagen\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/4ed5e5ac2936b41ac97853dc0d3e9ec7afa76bd9ee34b1302587861f9f627951?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/4ed5e5ac2936b41ac97853dc0d3e9ec7afa76bd9ee34b1302587861f9f627951?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/4ed5e5ac2936b41ac97853dc0d3e9ec7afa76bd9ee34b1302587861f9f627951?s=96&d=mm&r=g\",\"caption\":\"Harry Weinhagen\"},\"url\":\"https:\\\/\\\/www.glensfalls.com\\\/glensfallsbusinessjournal\\\/author\\\/harryw\\\/\"}]}<\/script>\r\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Business Report: Is A 401(k) Plan Right For You? - Glens Falls Business Journal","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2015\/12\/business-report-is-a-401k-plan-right-for-you\/","og_locale":"en_US","og_type":"article","og_title":"Business Report: Is A 401(k) Plan Right For You? - Glens Falls Business Journal","og_description":"Carissa A. Conley is a tax manager at CMJ, LLP in Glens Falls. BY CARISSA A. CONLEY, CPA If you own a business, establishing a retirement plan for yourself and your employees offers tax advantages and other benefits such...","og_url":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2015\/12\/business-report-is-a-401k-plan-right-for-you\/","og_site_name":"Glens Falls Business Journal","article_published_time":"2015-12-10T02:34:39+00:00","article_modified_time":"2017-11-08T16:03:06+00:00","og_image":[{"url":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/wp-content\/uploads\/sites\/109\/2015\/12\/carissa20conley20c.jpg","type":"","width":"","height":""}],"author":"Harry Weinhagen","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Harry Weinhagen","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2015\/12\/business-report-is-a-401k-plan-right-for-you\/#article","isPartOf":{"@id":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2015\/12\/business-report-is-a-401k-plan-right-for-you\/"},"author":{"name":"Harry Weinhagen","@id":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/#\/schema\/person\/3ebe5fa75888180eb780aad61cb877e8"},"headline":"Business Report: Is A 401(k) Plan Right For You?","datePublished":"2015-12-10T02:34:39+00:00","dateModified":"2017-11-08T16:03:06+00:00","mainEntityOfPage":{"@id":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2015\/12\/business-report-is-a-401k-plan-right-for-you\/"},"wordCount":558,"image":{"@id":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2015\/12\/business-report-is-a-401k-plan-right-for-you\/#primaryimage"},"thumbnailUrl":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/wp-content\/uploads\/sites\/109\/2015\/12\/carissa20conley20c.jpg","keywords":["Business Reports","Glens Falls"],"articleSection":["Business Reports"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2015\/12\/business-report-is-a-401k-plan-right-for-you\/","url":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2015\/12\/business-report-is-a-401k-plan-right-for-you\/","name":"Business Report: Is A 401(k) Plan Right For You? - Glens Falls Business Journal","isPartOf":{"@id":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2015\/12\/business-report-is-a-401k-plan-right-for-you\/#primaryimage"},"image":{"@id":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2015\/12\/business-report-is-a-401k-plan-right-for-you\/#primaryimage"},"thumbnailUrl":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/wp-content\/uploads\/sites\/109\/2015\/12\/carissa20conley20c.jpg","datePublished":"2015-12-10T02:34:39+00:00","dateModified":"2017-11-08T16:03:06+00:00","author":{"@id":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/#\/schema\/person\/3ebe5fa75888180eb780aad61cb877e8"},"breadcrumb":{"@id":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2015\/12\/business-report-is-a-401k-plan-right-for-you\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2015\/12\/business-report-is-a-401k-plan-right-for-you\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2015\/12\/business-report-is-a-401k-plan-right-for-you\/#primaryimage","url":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/wp-content\/uploads\/sites\/109\/2015\/12\/carissa20conley20c.jpg","contentUrl":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/wp-content\/uploads\/sites\/109\/2015\/12\/carissa20conley20c.jpg","width":576,"height":875},{"@type":"BreadcrumbList","@id":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2015\/12\/business-report-is-a-401k-plan-right-for-you\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/"},{"@type":"ListItem","position":2,"name":"Business Report: Is A 401(k) Plan Right For You?"}]},{"@type":"WebSite","@id":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/#website","url":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/","name":"Glens Falls Business Journal","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/#\/schema\/person\/3ebe5fa75888180eb780aad61cb877e8","name":"Harry Weinhagen","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/4ed5e5ac2936b41ac97853dc0d3e9ec7afa76bd9ee34b1302587861f9f627951?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/4ed5e5ac2936b41ac97853dc0d3e9ec7afa76bd9ee34b1302587861f9f627951?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/4ed5e5ac2936b41ac97853dc0d3e9ec7afa76bd9ee34b1302587861f9f627951?s=96&d=mm&r=g","caption":"Harry Weinhagen"},"url":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/author\/harryw\/"}]}},"_links":{"self":[{"href":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/wp-json\/wp\/v2\/posts\/28262","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/wp-json\/wp\/v2\/users\/86"}],"replies":[{"embeddable":true,"href":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/wp-json\/wp\/v2\/comments?post=28262"}],"version-history":[{"count":1,"href":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/wp-json\/wp\/v2\/posts\/28262\/revisions"}],"predecessor-version":[{"id":29474,"href":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/wp-json\/wp\/v2\/posts\/28262\/revisions\/29474"}],"wp:attachment":[{"href":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/wp-json\/wp\/v2\/media?parent=28262"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/wp-json\/wp\/v2\/categories?post=28262"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/wp-json\/wp\/v2\/tags?post=28262"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}