Small Business Retirement Plans: Picking the Best Plan for Your Client

Author: Greg White

CPE Credit:  2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC
1.5 hours Retirement Savings and Income Planning for CFP

Small businesses have many retirement plan options. The selection of the best plan helps our clients minimize taxes and secure a more comfortable retirement. We’ll cover how to navigate through the options and pick the best retirement plan for each client.

Publication Date: August 2021

Topics Covered

  • The Big Picture
  • Elective Deferrals
  • Payroll Taxes Contributions
  • Compensation: Self-Employed Computation
  • Reasonable Compensation and Retirement Plans
  • SEP
  • SIMPLE Plans
  • 401(k): Designated Roth Accounts
  • In‐Plan Conversions
  • Defined Benefit Plans
  • Terminating Plans
  • Businesses under Common Control
  • Effect on Traditional and Roth IRA Contributions
  • Picking the Right Plan: Case Studies

Learning Objectives

  • Identify the best type of retirement plan for small business owners, based on the underlying facts
  • Identify the payroll ramifications of different retirement plans
  • Recognize how to compute the maximum available deduction for each type of plan
  • Identify the next step in choosing a plan, once you have considered the possible funding levels
  • Recognize the amount of compensation elective deferrals can be up to
  • Identify which contributions for owners of an S Corp are subject to payroll taxes
  • Identify the current 401(k) elective deferral for someone at least 50 by year end
  • Recognize which types of plans requires actuarial computations and an annual filing of Form 5500
  • Identify which plan allows for the easiest termination option


Instructional Method

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites

Advance Preparation

Registration Options
ADP Retirement Services Special Fee $0.00
Regular Fee $62.00

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