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Articles From Lumsden McCormick

Don’t Limit Your Business to a State Retirement Plan


Many states across the nation are passing legislation to provide workers with access to employer-sponsored retirement plans. It’s a huge step forward in helping people build a nest egg and save for retirement. We at Lumsden McCormick are qualified to offer you retirement plan options tailored to your size, industry, and goals. 

Employees are significantly more likely to save for retirement when they have access to a retirement plan sponsored by their employer, and the need is significant. So much so, that many states including New York are mandating employers to offer some type of retirement saving program. The New York State plan, Secure Choice Savings ProgramSenate Bill S5395A has been approved but the compliance regulations have not been published, they are expected in the Fall 2023.

On top of this New York State mandate, the SECURE ACT 2.0 passed in late December 2022 implements many serious and complex changes to qualified plans, retirement planning, and the options available to business owners and their employees which will have immediate effects.

As a small business owner, we understand that the security and financial well-being of your employees is a priority. That’s why we want to make sure that you understand your options when it comes to choosing the right plan solution.

Already have a plan in place? With the recent legislation, it is important to review your plan design and understand the changes that will be taking place and whether or not a change to your plan design will be beneficial.  

New York State Mandated Plan

In New York, employers with at least 10 employees will be required to offer their own workplace retirement savings program or be automatically enrolled in a state-run plan called the Secure Choice Savings programSenate Bill S5395A has passed the assembly and was signed by the governor but compliance deadline dates are not officially known at this time but are expected in the Fall of 2023. With the change looming, now is a good time to evaluate your options.

Working with a financial advisor to develop a customized plan can offer more control, flexibility, and tax benefits. Don’t wait until the last minute to determine whether your state plan offers the most value to you and your employees – the time is now to start the discussion.

Why Should You Offer a Plan Different from the State Run Plan

State-run plans are intended to ensure most employees have access to a workplace retirement savings program, but they can have some notable shortcomings. For example, many states only offer Roth IRAs, which means contributions aren’t tax deductible. Other drawbacks can include limitations on the amount you can contribute annually and a narrow choice of investment options. For the New York State plan specifically, all fiduciary decisions will be made by a Commissioner and Board appointed by elected officials and overseen by the NYS Department of Taxation and Finance.

Customized Retirement Plan Options offer:

  • Greater flexibility with account types and investment choices.
  • Tax deductibility and potential employer tax credits.
  • Higher contribution limits (typical 401(k) plans allow up to $22,500 annually for individuals in New York State and $30,000 for those 50 an older). Learn more on the IRS website.
  • Ongoing employee education and the opportunity to work with a financial planner.
  • Greater customization around plan design and features including profit sharing.

The Support You Need for a Worry-Free Plan

Offering an employee retirement plan can seem complex, but with the right partner, it doesn’t have to be.  We take the stress out of the equation with a comprehensive service offering just right for you.  Let us handle the details while you focus on your business.

  • We monitor and regularly evaluate all aspects of your plan, from the design to participation rates to individual investment choices.
    • Licensed professional advisor (CPFA Designated).
    • Accept fiduciary responsibility and reduce liability from an investment standpoint.
    • Variety of plan options, from simple to more comprehensive.
    • Partner and work with many third-party administrators and recordkeepers who handle plan administration and reduce the liabilities and responsibilities of the plan sponsor.
  • We offer dedicated, personalized support you won’t typically find with state-run services.
    • Administer plan, less clerical work for employer.
    • Manage employee enrollment and participation.
    • Implement changes when needed.
    • Dedicated support team from the third-party administrators partners we utilize.
  • Education is a cornerstone of our service for a healthy plan and better financial outcomes for your employees.
    • Host Employee Educational Events.
    • Enrollment meetings for new plans and new eligible employees.
    • Resource for the employees and their unique retirement questions.
  • You can also take advantage of annual reviews of your existing plan to ensure it is meeting your goals and objectives.

As a bonus, retirement plans are an important component of employee benefit packages – helping individuals save for a financially secure future – and they also offer valuable tax savings for business owners.

Why Partner with Lumsden McCormick?

Lumsden McCormick offers customized solutions to incorporate a retirement plan into your business.  As financial advisors and certified public accountants, we offer more value by applying a tax-focused lens to investment and advisory decisions.

We take our role as a fiduciary very seriously and are committed to acting exclusively in the interest of you and your employees.  Our extensive oversight can help ensure a healthy plan with affordable expenses and investment options that meet participant objectives.  We offer comprehensive financial solutions that help individuals and businesses make choices that yield healthier financial results.

Contact us today so we can discuss the right retirement plan for your business.



Don’t Limit Your Business to a State Retirement Plan

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Austin joined Lumsden & McCormick Financial Services in March 2022 as a financial advisor. He is currently licensed with his Series 7, 65 & 63, SIE, and Life & Health. Austin assists the Financial Services leadership team to deliver custom, holistic plans that fit an individual’s entire financial situation understanding the importance of cash flow, the role of taxes, wealth preservation, and legacy building. Additionally, Austin works with businesses and their owners to set up and manage their qualified retirement plans. 


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