Business Owners: Cal Savers Retirement & Tax Planning Workshop
2020 has been a challenging year to say the least for businesses operating in California.
Not only has Covid-19 been a major challenge to navigate and prosper, there were also new laws enacted at the beginning of the year that impose additional regulations here in California. One of these new regulations is a state-mandated business retirement plan (Cal Savers) which requires employers to offer a business retirement plan to employees.
Join us for an informative workshop to discuss what Cal Savers means to you and your business. We will also be discussing tax strategies to ensure your success and continued growth in the building industry.
- Cal Savers and alternative retirement plan options (401k, SEP, SIMPLE)
- Reduce unnecessary business taxes
- Reduce or eliminate capital gains taxes and/or estate taxes
- Transfer business ownership with minimal taxes
Cal Savers – Jonathan Benecke, Edward Jones
Business Tax Strategies - Michael G. Coltharp, MassMutual Northern California
A BRIEF OVERVIEW
Passed into law in 2016 and originally called the California Secure Choice Retirement Program, the CalSavers Retirement Savings Program is due for statewide launch on July 1, 2019. The program is mandated for all private employers in California who have more than five full or parttime employees over 18 (with at least one employee working in the state) that don’t already sponsor a retirement plan for their business.
COMPARING CalSavers TO A 401(K)
Employers subject to CalSavers have the option of establishing a plan that might better meet their and their employees’ goals and objectives,
with the primary focus on increasing savings for retirement.
Key points of comparison include:
Allowable employee contributions: The announced CalSavers maximum is $6,000 per year (or $7,000 for employees 50 or older).
The 401(k) limit for 2019 is considerably higher at $19,000 (pre-tax or Roth), or $25,000 for those 50 and older.
Automatic enrollment and auto escalation: These features are important to building retirement savings, and available with both types