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Why Itís a Good Time to Take a Closer Look at 401(k) Plans in
Todayís Economy

How CPAs can help their clients.

January 12, 2009
Sponsored by Paychex

Despite these turbulent economic times, you may be surprised at some of the advantages that a 401(k) can provide your clients. This is particularly relevant as social security benefits are at risk and personal savings rates are dangerously low. Even if the employees of your business-owner clients choose not to participate in a retirement-savings plan, it is imperative that the owners actively build their own retirement nest eggs — and a 401(k) can help them do this.

Do Some of Your Small Business Clients Have a SIMPLE IRA?

A SIMPLE IRA may be a cost-effective option for some clients. However, when you compare some of the differences between a SIMPLE IRA and a 401(k), some of your clients may be better served with the 401(k), particularly when coupled with the safe-harbor feature. Beyond higher annual limits and tax advantages, a 401(k) can also provide broader flexibility including:

  • Vesting schedules
  • Matching option
  • ROTH 401(k) (post-tax) contributions
  • Loan capabilities
  • Profit-sharing options

Your Consultative Opportunity

  • Review and evaluate your clients who currently maintain a SIMPLE IRA to determine if a 401(k) may be better for them (especially those who use Paychex for payroll).
  • Identify clients who can take advantage of the 401(k) benefits.
  • Identify clients who need to defer taxes in 2009.
  • Offer a free Paychex consultation to help your clients review and select an affordable and easy-to-administer 401(k) retirement plan.

With Paychex Retirement Services you can provide your clients — no matter what size business they have — a broad range of competitively priced 401(k) plan options for meeting their needs. Paychex provides you with resources to help meet their retirement goals while maintaining your role as the primary relationship manager.

To learn more about Paychex Retirement Services, and how your clients and their employees can benefit from a Paychex 401(k), contact your local Paychex representative at 877-264-2615 or visit www.paychex.com.

Paychex is proud to be the named provider for the firm-based AICPA Member Retirement Program, and preferred provider of payroll and retirement plan services for CPAs through the AICPA Business Solutions Program.