It may be late in the year, but it’s not too late to switch your 401(k) and save more in 2018! Just like your patients dealing with Open Enrollment, it’s important to review your plan every year to make sure that you have the Best Plan For You! 
Did you know that 401(k) plans offer more flexibility to allow pharmacy owners to maximize their benefit while improving their ability to attract, retain, and reward, their most valuable employees?
It’s true!
401(k) plans allow individuals to defer $18,000 per year, instead of only $12,500 with a SIMPLE IRA. You can also customize your plan to allow for profit-sharing, which is discretional from year to year – incentivising employees to help make each year better than the last. With profit-sharing, you can reach up to $54,000 per year (or $60,000 if you are over the age of 50, based on 2017 IRS limits).
Let’s look at an example.
If you are over the age of 50, you are able to defer $6,000 more (up to a total of $24,000), whereas SIMPLE only has a catch up of $3,000 when over the age of 50 (based on 2017 IRS limits). This allows you to start maximizing on your savings – all by switching your plan!
One thing to note; however, is that you cannot fund a SIMPLE IRA and a 401(k) in the same year – so if you don’t switch now, you will need to wait until the start of 2019, but you can roll-over into the 401(k) without penalty or tax implications. Additionally, notifications MUST BE SENT out to each participant of the SIMPLE IRA by November 1st informing them that the SIMPLE IRA will be terminated, so it is imperative that you ACT NOW!
Pharmacy401k understands the demands and time constraints involved with owning and operating an independent pharmacy, which is why we put in the work and research to find the best possible custom retirement plan options for your specific needs at the best cost for all independent pharmacy owners. If you are interested in finding the Best Plan For You – contact us today!
