Purpose: This workpaper tracks the implementation and annual review of advanced retirement strategies (P3) for Eiduk Tax & Wealth. These strategies build upon foundation and core deductions to maximize tax-deferred retirement savings.
Client Snapshot
Current Retirement Plan Situation
Retirement Strategy Implementation Tracker
| Strategy & IRC Reference | Implementation Date | Documentation Checklist | Verified | Annual Tax Savings | Notes / Next Steps |
|---|---|---|---|---|---|
| SEP-IRA Enhancement IRC §408(k) |
☐ Form 5305-SEP executed ☐ Account opened w/ custodian ☐ Contribution calc (25% comp, max $70k) ☐ Employee eligibility verified |
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| Solo 401(k) Implementation IRC §401(k), §402(g), §415(c) |
☐ Plan adoption & trust agreement ☐ Account opened w/ custodian ☐ Employee deferral: $23,500 + catch-up $7,500 ☐ Employer profit sharing calculated ☐ Roth & after-tax options enabled |
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| Roth Conversion Strategy IRC §408A |
☐ Roth IRA account established ☐ Tax bracket & conversion analysis ☐ Multi-year ladder plan created ☐ Form 8606 preparation |
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| Mega Backdoor Roth (In-Plan Conversion) IRC §402(c), §401(k), §415(c) |
☐ Plan allows after-tax contributions ☐ Plan allows in-service distributions ☐ After-tax limit calc (up to $46.5k) ☐ Conversion frequency established ☐ Automatic conversion setup |
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| Cash Balance Pension Plan IRC §401(a), §412, §415 |
☐ Actuarial study & plan document ☐ Annual contribution calc ($100k-$380k+) ☐ Form 5500 filing scheduled ☐ Employee eligibility determined ☐ Interest credit rate established |
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| Defined Benefit Pension Plan IRC §401(a), §415(b) |
☐ Actuarial benefit design complete ☐ Plan document executed ☐ Annual funding calc (max benefit: $280k) ☐ PBGC premiums & Form 5500 ☐ Annual valuation report |
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| 412(e)(3) Fully Insured Plan IRC §412(e)(3) |
☐ Insurance policy proposal reviewed ☐ Plan document from TPA ☐ Life insurance & annuity contracts ☐ Premium payment schedule set |
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| Safe Harbor 401(k) Design IRC §401(k)(12), §401(k)(13) |
☐ Safe harbor notice sent to employees ☐ Plan amendment adopted ☐ 3% nonelective OR match formula ☐ ADP/ACP testing exemption verified |
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| New Comparability Profit Sharing IRC §401(a)(4), §401(k) |
☐ Plan amendment for NC design ☐ Age-based allocation groups defined ☐ Gateway contribution (min 5%) ☐ Annual cross-testing by TPA ☐ Owner maximization (up to $70k) |
2025 Contribution Limits Reference
| Plan Type | Base Limit | Catch-Up (50+) | Total Potential | Key Considerations |
|---|---|---|---|---|
| SEP-IRA | $70,000 or 25% compensation | N/A | $70,000 | Simple setup, no employees required |
| Solo 401(k) | $70,000 (employee: $23,500 + employer: up to $46,500) | $7,500 | $77,500 | Employee + employer contributions, Roth option available |
| Mega Backdoor Roth | Up to $46,500 after-tax (Total $70k - employee deferral) | Included in 401(k) limit | $46,500 to Roth | Requires plan allowing after-tax + in-service conversions |
| Cash Balance Pension | $100,000-$380,000+ | Higher limits for older owners | $380,000+ | Age-weighted, requires actuary, can combine with 401(k) |
| Defined Benefit Plan | $280,000 annual benefit (at retirement) | N/A | Varies by age | Maximum deduction varies by age/income, actuarial calc |
| 412(e)(3) Plan | Based on insurance contracts | N/A | Varies | Fully insured, predictable costs, life insurance component |
| Roth IRA | $7,000 | $1,000 | $8,000 | Income limits apply: phaseout starts $150k single/$236k MFJ |
Summary Scorecard
| Category | Total Strategies | Strategies Complete | Annual Tax Savings | Target Range | % of Target |
|---|---|---|---|---|---|
| P3: Retirement Strategies | 9 strategies | 0 | $0 | $15,000-$60,000+ | 0% |
| TOTAL ANNUAL CONTRIBUTION | Combined Plans | $0 | Target: $70,000 | 0% |