People with assets like a home, a fully funded retirement plan
, stocks and bonds are more insulated from economic downturns.
CalPERS is the nation's largest publicly funded retirement plan
, with assets valued at over $250 billion and providing retirement and health care benefits to over 1.6 million California public employees, retirees and their families.
The SEP-IRA is for business owners who want a simple, lower-cost, employer funded retirement plan
. Unlike the Simple IRA, this plan allows contributions of up to 25 percent of compensation on a tax-deductible basis, and the limit per participant is $49,000 (in 2011).
* A FUNDED RETIREMENT PLAN is the type that most CPAs prepare for their clients.
A funded retirement plan has the additional advantage of being a powerful tool for recruiting and keeping staff.
One main advantage of tax qualification is that current taxability to the employee is avoided (for example, under a funded retirement plan
in which the employee is vested).
Caption: From snow cones to company funded retirement plans
to cereal drives, Benchmark Award winner Southwest Power Pool offers multiple reasons for its inclusion as one of this year's Arkansas Business Best Places To Work.
Consider the aptly named Top Hat pensions David Cay Johnston examines on page 34--separately (and very well) funded retirement plans
for the guys in the comer offices.
Murphy (law and economics, Miami U., Ohio) uses case studies and examples for illustrating the proper strategies for benefit design including publicly funded retirement plans
, health care programs, life insurance, equity benefits and disability plans.
The boomers will be cashing out their funded retirement plans
at the same time they are collecting on their pay-go entitlements--putting financial demands on future generations that exceed anything experienced thus far.
Funded retirement plans
give partners the security to make practice continuation decisions that emphasize the needs of clients and staff.