(CFP CE credit quiz at www.cheetahsmash.com)
Through our experience on various NAPFA boards, we've been lucky to make the acquaintance of Dave O'Brien of Evolution Advisors in Midlothian, VA. In addition to his advocacy of fee-only planners and the fiduciary standard in the public policy realm, Dave is incredibly well-versed on the role that advisors can play with workplace retirement plans, having presented on the challenges and opportunities in this area at multiple conferences.
Dave joined us and walked us through all the things that advisors who are interested in this space should know, including:
- Decision matrices between SEP and SIMPLE IRAs, Solo-401ks and profit-sharing plans
- New comparability and legal discrimination (which isn't as icky as it sounds)
- The four essential roles and responsibilities for any profit-sharing plan
- The advantages of creating a "safe harbor" 401k, and the necessary requirements to do so
- Some AWESOME acronyms, including QACA (Qualified Automatic Contribution Arrangement), QDIA (Qualified Default Investment Alternative) and QBERT (ok, we made up that one).
- Considerations when constructing the investment menu for 401k plan participants
- The different levels of fiduciary service to plans
- Four different "service models" when working with workplace retirement plans
Some helpful links about stuff we mention in the podcast
- When Solo 401k plans exceed $250,000, they need to file form 5500 EZ
- Do you have a client covered by two workplace retirement plans at unrelated employers? SCORE! Each one has separate Section 415 limits!