“At the height of his career in public company management, the 2008 recession resulted in John’s unemployment. Though his children were independent, John was at least fifteen years from considering retirement and opportunities for lateral moves were limited. John decided it was time to explore his entrepreneurial drive. Venture capital was scarce and commercial lenders were running for cover resulting in the need for creative financing of his purchase and rapid growth of a wholesale distribution company. John formed a corporation and an authorized stock distribution, then sponsored and created a 401(k) Plan that accepted Rollovers of retirement accumulation from IRAs and prior employers’ 401(k) Plans. He immediately took a Plan loan of 50% of his rollover and used it to purchase 100% of the authorized stock of the distribution company.

Today, John is repaying his 401(k) Plan loan on quarterly installments at 4.25% with all interest credited to his 401(k) Account. His business is exploding which has allowed for early repayment of Plan loans and large deductible contributions to the Plan. With an ever increasing 401(k) Account, John has a ready reserve to meet his growing need for sellable goods. Without this solution, commonly called a Rollover as Business Startup (or “ROBS”) John would have been forced to meet his capital needs through a 30%+ taxable distribution from his 401(k) plan.”

“Jerry, the founder of a construction company working exclusively with a Fortune 500 company based in Cincinnati, was using a Non Qualified Deferred Compensation arrangement to express his gratitude to a small group of long time employees. His business experienced rapid growth during the 1990s and he found himself with over fifty employees and using a SIMPLE IRA arrangement for the Company’s retirement program. While the SIMPLE IRA was a good fit when adopted, the requirement to provide a 2% contribution for anyone with $5,000 in earnings (in current and two prior years) caused inclusion of many seasonal or part-time employees.

Through partnership with Jerry’s Financial Advisor, we designed a Safe Harbor 401(k) Plan that enabled him to provide disproportionate discretionary contributions for himself and the group of long time employees who previously benefited under the Non Qualified arrangement. The Safe Harbor 401(k) feature allowed Jerry to extend the retirement benefit only to those employees working more than twenty hours per week (on average) and allowed increased salary deferral contributions by participants (SIMPLE IRA Limit in 2011 of $11,500 and 401(k) limit of $16,500).”

“After operating his low cost 401(k) Plan with limited assistance by phone or email through a national investment company, Tom found the time he and his staff were spending on the 401(k) Plan had become a real factor in overall cost. Additionally, he had no assurance that the results met regulatory agency requirements and no confidence that he had a reliable partner if the Plan’s operations were challenged. To rectify the problem Tom sought a local administration firm willing to provide a higher level of customer service.

Tom interviewed several local providers but the factor that carried the most weight in his decision was a representative willing to drive to his place of business and show him exactly where to sign, if necessary. He was pleased to find a partner in us that understands operating a 401(k) Plan is not his business; it’s the reward for a business operated well.”