RS 101
T or F: You can take a loan out and offer no employer match on a SIMPLE IRA
FALSE!
Simple: no loans; Match required
StarterK: 1 loan maximum; No match allowed
401k: loans allowed; No match required
What is SECURE Act 2.0 & name at least one potential credit. (100 pts for each).
SECURE ACT 2.0:
- Incentivizing business owners for putting a retirement plan in place
- Need for MORE people contributing to and access to retirement benefits
3 diff credits:
1. Potential STARTUP/ADMIN Tax Credit
2. Potential AUTO ENROLL Tax Credit
3. Potential COMPANY MATCH Tax Credit
Why RETIREMENT matters? (Name the 4 Rs)
1.REITRE!!!
“You need a paycheck today… you’ll need a paycheck when you retire.”
2. RETAIN!!
“A retirement plan is the second most sought after benefit, right after health insurance.”
3. REDUCE TAXES
“I want to pay more in taxes”, said Nobody. Ever
4. REQUIRED
CalSavers... required for 1+ EE
Which region is #1 in the country for RS dollars?
BIG O.... DUH!!! OVER $2.1M IN RS SPLITS
Name another state (besides CA) that has mandated a state-sponsored retirement plan as of October 2025?
California Colorado Connecticut Delaware Illinois Hawaii Maine Maryland Massachusetts* Minnesota Missouri Nevada New Jersey New Mexico New York Oregon Rhode Island Vermont Virgina Washington
Describe potential STARTUP/ADMIN Tax Credit
Up to 100% of administration costs for the first THREE YEARS ($5,000 MAX per year)
'I don't need retirement I have Social Security.'
*role play*
SOCIAL SECURITY expected to run out in 2034 and $1290.... yea they ain't gonna cut it????
WHICH SE IS LEADING THE WAY THIS MONTH WITH RS LEADS?
#1 TEAM MIKEY (25)
#2 TEAM FREDDY (23)
#3 TEAM ZACH, JOS, JAVI (18)
#4 TEAM VERO (15)
#5 TEAM NAT (14)
#6 TEAM LINDS (10)
#7 TEAM BRJ (9)
What is the annual employee deferral limit for a STARTERK vs SIMPLE IRA vs 401K plan?
STARTER: $6,000
SIMPLE: $17,000
401K: $24,500
Describe potential AUTO ENROLL Tax Credit
$500 per year for the first THREE YEARS just by opting into Auto Enroll on plan document
With Auto Enroll, the employees are automatically enrolled in the plan when they reach eligibility and can OPT OUT if they don’t want to participate
'My Business is my retirement'
*role play*
Just one stream, you need more!
Same goes for Real Estate!
NAME THE PAYK THAT IS #3 IN THE COUNTRY
TONY PAN ALMOST $300K YTD IN RS ALONE!
VESTING options for SIMPLE VS 401K?
Simple: Contributions 100% vested immediately
401k: Various Vesting Schedules
Describe Potential COMPANY MATCH Tax Credit
Up to $1,000 per employee the business owner matches that makes less than $100,000 (phased out over 5 years)
•Year 1: 100%
•Year 2: 100%
•Year 3: 75%
•Year 4: 50%
•Year 5: 25%
'I already have my IRA'
*role play*
Good! With who? Would you like to save MORE on your taxes?
111 firms in this region that got paid on PTA revenue share that are not on _________ revenue share
RETIREMENT
simple/starterk: $100
startup: $200
conversion under 50 EEs: $1000 (May only, usually $500)
Form _____ is the annual filing required by the IRS and DOL. When is it due?
Form 5500. It teports important info on the 401k: assets, participants, fees, investments, plan compliance w/ federal laws like ERISA.
DUE JULY 31ST (seven months after the end of the plan year) can file an extension (Oct 15th)
Penalties: IRS up to $150,000 and DOL penalties are often higher; assessed separately.
How do you claim SECURE ACT 2.0 Tax Credits?
Form 8881.
With the comprehensive Retirement Plan Startup Tax Credit Package, ADP Compliance Solutions provides a detailed tax credit calculation — giving your client information that their tax advisor can use to help them determine if they are eligible for the credit, and if so, information they will need to complete Form 8881 to file their claim.
'I have a 401k already'
*role play*
That’s great! With Who?
We can integrate it with RUN!!
WHO IS WINNING BATTLE OF THE WEST: BIG O OR SD?
BIG 0! ONLY ~25K DELTA BEHIND SD... TIME TO CLOSE THE GAP NEXT WEEK!