Retirement Plans

The  recent passage of tax legislation has brought about one of the largest changes to the retirement planning area in the last 20 years.  The tax regulations have generally been expanded to allow for increased contributions to both individual and business retirement plans. The new law has opened up a number of unique wealth building strategies.  With the availability of numerous new funding vehicles, it has become increasingly important to review your retirement planning strategy as it relates to other areas of the wealth care process including tax, distributions, education and estate planning. Due to the complexity of retirement plans under the current legislative environment we highly recommend that you seek the advice of a professional in determining the proper plan for you.

Wealth Insight Network offers a number of investment products to use in funding your retirement plan.  We can set up retirement accounts that invest in individual securities, mutual funds and other direct participation programs.  We have access to over 6,000 mutual funds and, unlike large brokerage wire houses, we do not endorse any one particular product.

Individual Plans


  • Traditional Tax Advantaged IRAs
  • Roth IRAs
  • Stretch IRAs





Traditional Tax Advantaged IRAs provide the easiest form of retirement for individuals and now allow for a $5,500 maximum contribution beginning in 2011.  If you are over age 50 an additional catch-up contribution of $1,000 is allowed.  Limits on these plans depend on your participation in a company retirement plan and on your earned income.  One unique feature of an IRA is that a spouse with little or no earned income can borrow the earned income of the other spouse to allow for his (her) own contribution to an IRA.




Roth IRAs are a type of individual retirement account that does not offer you a tax advantage when the contribution is made, but does offer tax-free payout of accumulated principal and earnings at retirement age.  Roth IRAs are available to higher income individuals with contributions allowed to single filers with adjusted gross income(AGI) up to $132,000 and joint filers with AGI up to 194,000.  A unique feature of Roth IRAs is that you don't have to wait until retirement to have access to your original contributions without penalty.



Stretch IRAs are a form of IRA where you develop a payout strategy, which allows for delayed distributions from an IRA owner through the naming of younger beneficiaries.  This means taxes can be deferred after death of the original IRA account owner.  The technique can be used with Traditional, Roth or Rollover IRAs.  Beneficiary designations for these types of IRAs can be changed at any time, even after the death of the IRA owner.  Use of a 'Stretch IRA' assumes that you will have no need for the money in the IRA, either before or after retirement.



Wealth Insight Network can assist you in determining the type of retirement plan best suited to your company.



Business Plans




  • SEP IRAs
  • Simple IRA and 401(k) Plans
  • 401(k) Plans
  • One Owner 401(k) Plans
  • Profit Sharing Defined Contribution Plans
  • Money Purchase Defined Contribution Plans
  • Defined Benefit Plans
  • RMS [Retirement Management Solutions] plans offered through 1st Global Advisors, Inc. with more than 2,800 mutual funds to choose from.






SEPs are simplified employee pensions which are basically employer funded IRAs.  Annual contributions are made into the employee's specifically established IRA.  SEPs have higher funding levels than traditional IRAs and are easier to set up than other qualified plans; however, there are strict vesting and participation requirements. Generally, employees become 100% vested after a maximum of three years. Employers cannot discriminate in favor of owners and contributions to each employee (and owner) are based on the same percentage payouts in relation to compensation.  Under the expanded contributions limits, the maximum contribution to these plans is now $52,000 depending on compensation levels.




Simple IRA and 401(k) Plans are simplified retirement plans that can be sponsored by an employer with 100 or fewer employees.  They are designed for small companies and sole proprietors who want a qualified retirement plan to reduce taxes and offer employee benefits, but without the extra cost and paperwork of a traditional 401(k) or other qualified plan.  These plans can be funded through an IRA account for each employee or a Simple 401(k) arrangement.  Participants are eligible to participate if they make at least $5,000 per year.  Participants contribute up to 100% of compensation to a maximum of $12,500 for 2016.  Additional catch-up contributions are allowed for individuals age 50 or older of $3,000 for 2016.  The employer must match 100% of a participant's elected contributions up to a maximum of 3% of compensation unless he elects to make a non-elective contribution of 2% to all eligible participants.



401(k) Plans are sponsored by the employer and provide a vehicle for making employee elected defined contributions to individual employee accounts.  These plans generally shift the funding and investment selection responsibility from the employer to the employee.  Participants elect what percentage of pay they want to contribute to the plan and the employer may elect to match a percentage of the contribution.  The employer can elect a specific vesting schedule with regard to availability of the retirement account to employees separated from service to reward employees for their loyalty to the organization.  The employer can add a profit-sharing component to these plans which can add to the flexibility and tax advantages of this type of arrangement.  These plans can also provide for loans to plan participants of up to 50% of the participant's account balance to a maximum of $50,000.  Under current regulations an employee can elect to contribute up to 100% of compensation to a maximum of $18,000 for 2016.  Additional catch-up contributions are allowed for participants age 50 or older of $5,500 for 2016.  Participant elected contributions to the plan together with matching employer contributions and profit-sharing contributions can reach a maximum of $52,000 each year depending on compensation levels.



One Owner 401(k) Plans are a form of the standard 401(k) plan that can now be adopted by a one owner business with no employees.  The obvious advantage to this type of plan is that under new regulations the owner can contribute up to $52,000 to the retirement plan ($57,500 if age 50 or older)  This plan also can allow for loans to participants which can allow an owner to make large contributions to a plan, but have the flexibility to get some of the money back in the form of a loan for short-term (generally under 5 years) financing needs.  The loans are required to be paid back within 5 years and certain other limitations apply.  One disadvantage in the past to a traditional 401(k) plan arrangement was the cost of administering the plan.  Often times these costs could run $1,000 to $1,500 to set-up the plan and $1,000 to $2,400 per year to administer.  These costs were often difficult for a small employer to absorb.  The good news is that we have a 401(k) plan that mostly eliminates the cost of administering the plan.



Profit Sharing Defined Contribution Plans are qualified retirement plans that provide for a set contribution to a participants retirement each year based on a standard percentage or formula.  Unlike standard money purchase pension plans, the contributions percentages set by the employer each year are flexible and can be tied to profits of the business.  These plans can be integrated with social security, age weighted and cross tested for more aggressive funding to the owners and key employees.  Considerations such as cost of compliance and appropriate employee base are necessary to evaluate whether or not this would be profitable to the business owner.  These plans can also be combined with other qualified plans to enhance the flexibility and planning advantages of your retirement arrangements. New tax regulations allow for aggressive funding to owners of the business depending on how the plan is designed.



Money Purchase Defined Contribution Plans are qualified retirement plans that provide for a set contribution to a participant based on a formula that is usually a fixed percentage of compensation with a limit of 25% of the eligible participant's compensation.  Recent tax regulation has made money purchase plans somewhat obsolete as 25% of eligible compensation can be funded into a profit sharing plan with no required annual contributions.  If you currently have one of these plans in place, we can help determine a more flexible retirement arrangement under the new tax laws.  Care should be exercised when terminating and merging a money purchase plan into a profit sharing plan or other type of plan due to special accounting requirements.



Defined Benefit Plans are qualified retirement plans that generally provides for a participant's retirement based on a benefit at retirement determined from a set formula based on an employee's current compensation.  These plans can be complicated and costly to administer but in certain circumstances can be of use to a business.  Sometimes these plans can be used to help eliminate high taxable income from a business and shift it into a retirement plan for the owner.  In certain cases where the owners of a business are older than other employees of the business, these plans can provide huge retirement benefits to the owners on somewhat of a discriminatory basis.  These plans can also be advantageous to doctors or other high income professionals who are looking for a vehicle to fund large amounts of money into retirement.  The current annual maximum contribution to these plans for 2016 is $210,000 depending on the participant's compensation.



RMS/Retirement Management Solutions is a fee-based complete retirement solution for employers who want flexible solutions and outstanding service at a competitive cost. RMS offers complete customer support and education as well as online plan access.  Plan sponsors can set up a full-featured plan, review and update participant data, process contributions and rollovers, view and edit reports and access plan documents – all online.  Plan participants have 24/7 access to their accounts to view balances, review and adjust investment allocations, change contribution levels, and request a loan or distribution.  Plan participants are also provided investment and retirement education through on-line articles on relevant topics.  As your investment advisor for the plan, we also provide on-site market updates and educational presentations to your employees based on a customized schedule for your plan.  Contact us today to see what other benefits these plans can provide for your Company.