Stories of Savings

We can help!

As a client, you're our number one priority.

Plan sponsors often don’t realize they need help or have options, since not all plans are created or administered equally.

Each client situation is different. There are several testing options for 401(k) plans. We explore various ways to make plans operate to best reflect the view of the Plan sponsor. Since the testing alternatives are demographic dependent, each plan and each plan year can be different. We have the experience and expertise to optimize plan operation under current law.

Grant and Jeff Brown in Warwick, RI

"I didn’t know I could do that with a 401(k) plan."

Situation

We took over a plan for a law firm partnership that maintained a 401(k) Plan with a traditional allocation formula based on compensation. The older partners wanted higher allocations, and the younger partners wanted to keep more cash for mortgage and tuition payments.

Solution

We implemented a creative class allocation formula, with a class for each participant and educated the client about the benefits of the added flexibility and how they could use it.​

Savings

At no required additional cost for staff, the older partners were able to receive maximum legal allocations. Also, the firm was able to recognize and incentivize key staff members with increased pension contributions.

"I'm tired of paying so much in taxes."

Situation

We were introduced to a manufacturer’s representative who maintained a 401(k) Plan. His wife was on payroll to boost deductions, but he was still limited to a total of $80,000 going into the plan for his family. He wanted more deductions.

Solution

We implemented a Defined Benefit Plan and increased his tax deduction by over $90,000. Furthermore, we provided a supercharged Roth IRA where he deposited over $30,000 to grow tax free.

Savings

When asked what it would cost him for our services, we said there was no additional cost. If he took his wife off payroll (which we felt should be the case if not actually performing services), our total fees for both plans were less than the social security taxes he had previously payed on her salary.

"Our payroll company is giving us bad advice."

Situation

The owner of a local manufacturing business was frustrated that according to their large, national payroll company, they had to contribute $20K+ to keep the plan compliant based on the employee contributions the owner had made. Furthermore, if they wanted to make employer contributions, all would need to receive the same percent of pay, including the already overpaid salesman.

Solution

We updated the definition of who is highly compensated using a special “Top Paid Group” election and were able to demonstrate that no correction was needed. We also updated employer allocation to a more flexible formula that would allow us to provide the owner a larger amount and avoid making any contribution for the salesperson that was already receiving around $250k in compensation.

Savings

The owner saved $20k in contributions that would have otherwise been needed for staff. He chose to make an employer contribution for staff, but was further able to save around $10k+ that would have otherwise had to go to his salesman.

"We're not seeing any real benefits with our plan."

Situation

A construction client had a prevailing wage plan to cover his employees doing public sector work, but he and his office staff were not benefitting.

Solution

We amended the plan document to combine it with the existing 401(k) plan and were able to use the prevailing wage contributions to offset other employer contributions.

Savings

The owner received an allocation of over $60,000 for himself at a modest overall increase in his plan contributions for others and saved on administration costs by only having a single plan for the company. Other construction clients of ours who didn’t already have the prevailing wage plan in place saved $100k+ in payroll and other tax savings by implementing a plan.

From defined benefit plans for business owners to 401(k) plans for hundreds of employees, we want to help your business save.

Save with a Purpose

How We Give Back

Our commitment to helping businesses owners and employees reach their financial goals and do meaningful work is mirrored in our annual financial support of 1%+ of our profits to the following local organizations.

Each one positively impacts our region through providing needed welfare services, educational opportunities, creative artistic outlets, medical advancements, or community building.

We’re proud to be part of their growth.

Organizations we support

Alzheimer’s Association-Rhode Island Chapter
Big Brothers Big Sisters of the Ocean State
Big Picture Learning
Community Foundation of Southeastern MA
Community Preparatory School
Cooperating Libraries Automated Network
Crossroads Rhode Island
East Bay Collaborative
Freelance Players, Inc.
George Hail Free Library
Greenville  Public Library
In-Sight
Jewish Alliance of Greater Rhode Island
Jewish Family Service, Inc.
M.A.P.
Mental Health Consumer Advocates of RI
Multiple Sclerosis Society
RI Community Food Bank Association

Rhode Island Foundation
Rhode Island Council for the Humanities
Rhode Island Philharmonic Orchestra & Music School
Rhode Island Public Radio
Sojourner House
South Shore Mental Health Center, Inc.
SouthSide Elementary Charter School
Squash Busters
Temple Beth-El
The French American School of Rhode Island
The Greene School
The Sandra Feinstein-Gamm Theatre
Transitions Centers, Inc.
Trinitarian Congregational Church
Waterfire Providence
Westerly Area Rest Meals

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