Specializing in Qualified Retirement Plans

Setting up a retirement plan is a highly specialized area that requires expertise. "Retirement plans are on a continuum. On one end, the purpose of the plan is strictly an employee benefit plan. This is typical in many midsize and larger companies . At the other end of the continuum the purpose of the plan is strictly a tax shelter for the professional or owner of the business, recognizing that contributions to the plan are deductible and grow tax-deferred. The plan we design can be anywhere along that continuum. It's our job to identify where the client's goals lie and design a plan that meets their need's," says Shayna Osborne, APA, APR.

"Typically, a CPA recommends us to a successful professional practice or business for help in developing a retirement plan. We meet with the client and the accountant to discuss alternatives. We identify the company's goals, what they want to accomplish in their retirement plan and then make a recommendation in the form of a proposal," she concludes.

When employee benefits are an important factor, a 401k plan is often part of the proposal. This increasingly popular type of profit sharing plan usually includes nominal employer contributions, with employees contributing the larger amount as a payroll deduction. Contributions are tax deductible and accumulate tax deferred.

Once all the details are in place, Osborne & Nelson, Inc. explains the plan to the client's employees and provides personal assistance. This may include a slide presentation, group meetings, and follow up with each employee with individual assistance.

Defined benefit plans are popular with small closely held businesses because of the leverage possibilities. These traditional pension plans usually provide a fixed monthly benefit at retirement, but may also offer a lump-sum payment. Defined benefit plans can be leveraged in favor of an owner employee who is older and drawing a higher salary than his or her employees. A client's pension program may also include other types of retirement plans.