What is a Safe Harbor 401(k) Plan?

Navigating the world of retirement plans can be daunting for employers, especially when it comes to ensuring compliance with IRS non-discrimination rules. For many plan sponsors, Safe Harbor 401(k) plans offer a streamlined path to compliance and a way to maximize benefits for both employees and owners. Understanding the different Safe Harbor plan types is crucial for making informed decisions that meet both regulatory needs and organizational goals.

Excellence in Service means we are team-focused, innovative, have personalized solutions with collaboration and integrity

At DRDA, we pride ourselves on delivering service that’s not only accurate but truly impactful. We know it can feel like we ask a million questions—but we promise, there’s always a reason. Every detail we request helps us better understand your financial picture and ensures we don’t miss a single opportunity to serve you well.

Take this recent case: a new client provided a year-end loan statement, which allowed us to compare it against their balance sheet. What we found was significant—over $800,000 in depreciable assets missing from the books. This discovery has huge tax implications and will ultimately save the client thousands of dollars. If they had only sent interest details, this critical oversight might have gone unnoticed. This is why we ask the questions we do.

Why BORSA Plans Work So Well with Franchises

For aspiring entrepreneurs, franchises offer a proven business model, brand recognition, and built-in support systems. But even with these advantages, securing the necessary funding can be a challenge. That’s where Business Owners Retirement Savings Account (BORSA) [more often referred to as Rollovers as Business Startups (ROBS)] plans shine. BORSA plans are particularly well-suited for franchises, offering a unique financing solution that aligns perfectly with the needs of franchisees.

Understanding Minimum And Maximum Funding Levels For Defined Benefit Plans

Defined Benefit (DB) plans are a cornerstone of retirement planning for many employers and employees. These plans promise a specific benefit amount to participants upon retirement, making them a reliable source of income. However, maintaining a DB plan requires careful attention to funding levels, as both minimum and maximum funding requirements are heavily regulated to ensure solvency and compliance with federal laws. In this article, we’ll explore the concepts of minimum and maximum funding levels, why they matter, and how they impact plan sponsors.

What is ERISA and how does it benefit your business?

The Employee Retirement Income Security Act (ERISA) is a significant federal law that sets standards for employee benefit plans offered by private employers. Enacted in 1974, ERISA aims to protect the rights and interests of employees who participate in retirement plans, health insurance programs, and other welfare benefit plans. ERISA was enacted to establish minimum standards for employee benefit plans to safeguard the financial security and welfare of employees. It applies to private-sector employers that offer employee benefit plans, including pension plans, 401(k) plans, health insurance plans, and other welfare benefit plans. ERISA does not cover government plans, church plans, or plans maintained outside the United States for non-resident aliens.

The Evolution of Defined Benefit Plans: Traditional to Cash Balance

The landscape of defined benefit plans has undergone significant transformation since American Express established the first private pension plan in 1875. Traditional defined benefit plans dominated the retirement landscape through the 1960s and 1970s, but their popularity began declining in the 1980s due to increasing administrative complexity and cost concerns.

Do You Need a Formal Valuation for Your BORSA/ROBS Plan? Here’s What Business Owners Should Know

If you’re using a Business Owners Retirement Savings Account (BORSA) or Rollover as Business Startup (ROBS) to fund your business dreams, you’ve probably wondered about valuation requirements. As a business owner, understanding when and how to value your BORSA/ROBS plan assets isn’t just about checking a box—it’s about protecting your investment and staying compliant with IRS regulations. Let’s break down everything you need to know about BORSA/ROBS plan valuations in plain English.

SOLO 401(k) PLANS

With the growing gig economy and more individuals choosing self-employment, solo 401(k) plans are gaining significant interest. Understanding these retirement plans and their unique benefits can help eligible small business owners maximize their retirement savings.

DRDA, LLC Was Awarded the BBB Pinnacle Award for Excellence in Accounting/Taxes for 2024

We are pleased to announce that DRDA, LLC was named the Pinnacle Winner in the Accounting/Taxes category at the 2024 BBB Awards for Excellence. We appreciate the recognition that the Better Business Bureau has bestowed on DRDA, LLC .

Are You Ready to Be the Boss?

In an ever-increasing competitive workplace, how we show up matters. If you want to get ahead, you must show up as a leader – not only a manager. The difference between leadership vs management is big, and the distinction between the two matters. Not every manager is a leader, and not every leader is a manager, the ability to balance both is a feat many of us aspire to achievement.