CASE STUDY #6:

How resourceful implementation can make a difference.

My clients were the owners of a small but thriving business in Yonkers.  They wanted to put away substantial funds for their retirement, and I recommended that they adopt a company 401-k plan.  This required an enrollment meeting to get as many of their employees as possible to contribute to the plan.  The problem was that almost none of their employees could speak English.  I located a very good mutual fund management company that specialized in setting up corporate 401-k plans and then paid for a Spanish speaking consultant to visit the company along with me and make the investment presentation to the employees.  As a result of having had the plan explained to them in Spanish, there was almost one hundred percent participation by company employees in the 401-k plan.  The owners are now putting away substantial retirement funds for themselves.

 

 

 

Legal Disclosure:  The rules surrounding IRA’s, 401-k accounts and other qualified plans are complicated and errors may not necessarily be able to be corrected and valuable tax advantages permanently lost.  In connection with 401-k plans, please note that you may lose your chance for favorable tax treatment on a lump sum distribtuion from your current 401-k plan balance if you make rollovers to a qualified plan account that consists of assets that are not from another qualified plan.  Additional tax consequences and age limitations may affect your ability to withdraw or roll over funds.  The plan document governing your 401-k plan and current tax laws and regulations will govern in case of a discrepancy.  Be sure you understand the tax consequences and your 401-k plan’s rules for distributions before you initiate a distribution.  Consult your tax advisor regarding tax treatment before making a rollover, contribution or distribution.