Small S-corp retirement plan upgrades: guidance requested

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CascadiaSoonish
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Joined: Tue Feb 13, 2018 11:44 am

Small S-corp retirement plan upgrades: guidance requested

Post by CascadiaSoonish » Mon Jul 30, 2018 2:49 pm

hi all, my small professional services s-corp (6 employees including myself, ca. $1M/yr revenue, profitable) has used a Vanguard SIMPLE IRA for the past few years. Two of us (myself as owner and a key employee) are both maxing out our contributions and I think it's time to consider switching to a 401k plan. While there are some questions I know I want to ask (example: plan support for "reverse rollovers" so we can put our existing IRA accounts into the 401k prior to doing backdoor Roths) I'm sure there are other questions I don't know enough to include in the planning. For example, I've spent some time reading up on safe harbor plans but I'm not clear yet how contributions to those can be structured for optimal benefit for all participants, and the administrators just talk broadly about plans but can't spend the time with small accounts to really figure these things out.

I'd like to hear from Bogleheads who may have suggestions or observations or who have done something similar. Factors to consider? Methods for calculating cost/benefit vs. the existing SIMPLE IRA? deal-breakers with the offerings from certain administrators? Questions to ask? Experiences moving companies from the SIMPLE plan?

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