Mike and his family currently have a high deductible plan with a deductible of $12,500 and a
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2. If Mike were to set up a qualified plan, then who would be eligible for the plan?
3. What is the best retirement plan to set up if Mike wants to give himself and coaches a way to defer income into the plan with minimal contributions by RBI and minimal hassles in setting up and administrating the plan? (maximum contribution)
4. How much could Mike contribute for himself in 2022 if he set up a SEP with a 25% contribution? Consider the KEOGH Calculation. (Please Show your work)
5. How much could Mike contribute for himself in 2022 if he set up a safe-harbor 401(k) plan?
6. What risks does Mike have that need to be considered?
7. Based on Mike's needs (he needs to save $36,000 per year) and what you have gathered from the case, what type of retirement plan would you recommend, if any at all? Justify your answer. Compare and contrast 3 different retirement plan options as part of your answer. (ex. 401 k, 457 (b)... and show the difference for each such as eligibility, max deferred amount, contribution, benefits so on...)
8. Assume Mike adopts a SEP and contributes 25 percent for all three coaches.
How much can he contribute to the SEP for himself?
What are the advantages of this approach?
What are the disadvantages of this approach?
9. Assume Mike adopts a safe harbor 401(k) plan with a 100 percent match up to 4 percent and all coaches are eligible and contribute at least 4 percent to the plan. (Show on chart and explain)
How much can he contribute to the SEP for himself?
What are the advantages of this approach?
What are the disadvantages of this approach?
10. Would the plan pass or fail the ACP and ADP testing for HCE and NHCE based on the information from question 9? Show your work.
11. What is the best retirement plan option for Mike if he wants to exclude as many coaches as possible from the retirement plan?
Related Book For
An Introduction to Management Science Quantitative Approach to Decision Making
ISBN: 978-1337406529
15th edition
Authors: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran
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