Michael Fennessy is the Regional Sales Director for Ameritas and an expert when it comes to 401(k) plans and inspiring business owners and their employees to save for retirement. For the past 14 years Michael has helped a variety of companies from small business owners to Fortune 500 companies with implementing employee benefits. For the past four years he’s concentrated his work on how to create situations where there is tax-free money available at retirement.
In this episode, Paul and Michael will teach you about strategies regarding your retirement plan and how it’s more than just the investments you make. If you’re a business owner or an entrepreneur, you will learn how putting money in and out of the plan and how you choose to put money in for your employees impacts how much you can add.
What Was Covered
- 03:51 - Michael’s background and the work he’s been focusing on over the past 4 years
- 08:30 - The tax benefits that comes with choosing a Roth 401(k)
- 14:15 - The catch-up provision in your 401(k)
- 15:28 - In-plan Roth conversions
- 18:49 - Michael’s 401(k) scorecard giveaway
- 26:03 - Michael gives an example where a couple used a certain tax strategy to extract value from a business and get it on their personal balance sheet
- 28:21 - Required minimum distribution and the penalty for not taking it at 70 and a half years old
- 32:26 - Roth dollars not requiring minimum distributions
- 33:32 - How business owners can put hundreds of thousands of dollars a year from the business balance sheet to their personal balance sheet
- 36:35 - ERISA code 410B: Benefit coverage and highly compensated employees
- 39:50 - How coverage works in a cash-balance plan
- 46:09 - The biggest reason that stops business owners from exploring being more creative in their 401(k) strategies
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