In addition to working directly with small business owners, we also work with financial planners and business managers. As a financial advisor or accountant, you will find working with us to enhance your clients’ retirement security to be a simple process.Following the initial plan set-up, First Capital Benefit Advisors will provide you with ongoing support to assist your clients. We encourage you to contact us throughout the year as questions arise. With the signed plan document in hand, the yearly process is as follows:
- Contributions – your client makes contributions as money is available – we help you to understand the timeline. For example, if your client has a 12/31 year end, then if you or the accountant gets an extension on the business return (which if often automatically done with a Defined Benefit Plan), then your client has until September 15 of the NEXT year to make the contribution.
- Valuation and AFTAP report – we perform beginning-of-year valuations (end-of-year for some combined plans). We typically complete the actuarial valuation by April of the current year. This actuarial valuation shows the range of contributions for the current year, and therefore is very important for your client. We are always happy to discuss this range.
- Year-end process – We request Census and Trust information from you shortly before the end of the year. We ask that you and your client complete this and send it back to us as soon as the information is available. The financial advisor provides a report of the investments that covers the client’s current year. The accountant or client provides a full census of the employees at year end, including salaries, as well as a page showing the inflow and outflow from the investment fund for the year (contributions in and payments to participants out). All contributions that are going to be deducted on the tax return for the year, even those contributed after year end, should be reported to us. After receiving the requested information, we prepare the 5500 series forms, and send them to the client.
- Small amendments – you or your client may want to change the plan in some fashion during the year, or we may recommend changes from time to time. We prepare amendments to accomplish these changes, and send these out.
- If the plan is covered by the PBGC, we prepare filings as necessary.