Retirement Plan Management

We believe that retirement plan management boils down to two main functions:

  1. Simplifying plan administration for employers and sponsors
  2. Increasing employee participation and contributions

A well-designed plan will most likely not serve its purpose if employees don't participate.

Alternatively, you can have a plan where all your employees participate and max out their contributions each year, but if the plan has high fees or lacks a good investment menu, participant assets may not grow as well as expected.

We believe a successful retirement plan structure keeps both plan sponsors and participants in mind and doesn’t sacrifice one for the other.

Our Approach to a Comprehensively Governed Plan

Simple & Transparent Fee Arrangement

We strive for uncomplicated fee arrangements and billing transparency.

Investment Selection

Our team objectively selects investment options from the complete fund universe, offering focused exposure to all risk dimensions of the diversified capital markets.

Advisor Objectivity

As an RIA not affiliated with a broker-dealer, Matisse Capital strives to provide unbiased financial advice.

Advisor Signs as Co-Fiduciary with Plan Sponsor

We typically sign on as a co-fiduciary, providing written acknowledgment of our fiduciary duty and an Investment Policy Statement. A fiduciary due diligence process follows, including quarterly investment meetings.

Age-Based Portfolio Construction

Not all participants are the same. We use age-based model portfolios, giving participants access to professionally constructed, diversified portfolios that can reduce excess and undesirable risk.

Face-to-Face Participant Consultation

Building trust with participants is essential to a plan's success. We find that face-to-face meetings are the best way to begin establishing trust, whether that's over Zoom or in-person.

Retirement Plan Services

1. Fiduciary Governance

We help our corporate clients comply with fiduciary responsibilities governed by the Department of Labor by facilitating a comprehensive, risk-averse implementation plan.

2. Investment Advisory

Our team generally provides investment education and advisory services to the fiduciary committee on a quarterly basis. As the advisor, Matisse Capital oversees the investment process, including fund selection, monitoring, and replacement when necessary. Through regular meetings, our team provides customized reporting and analytics that will help the client measure results and evaluate fund performance.

3. Employee Services

Investment advice and education are very important, and our team provides this to plan participants on a one-on-one level at no additional charge. Group plan education and enrollment meetings are generally held as needed. Ongoing employee communication is typically provided through regular quarterly newsletters and annual education seminars. Of course, employees always have unlimited access to our advisors for questions and concerns.

Roles and Responsibilities

Roles-and-Responsibilities

Small Business Retirement Plans

Choose the right retirement plan for you and your employees.

Here's a quick and easy guide to determining the best fit for your business and employees – it includes basic facts about different types of plans:

TitleSEP-IRASIMPLE IRAIndividual 401(k)Small Plan 401(k)
Employer contribution deductibilityContributions are deductible as a business expense and aren't required every year.Contributions are deductible as a business expense and are required every year the plan operates.Contributions are deductible as a business expense and aren't required every year.Contributions are deductible as a business expense and aren't required every year.
Employer's responsibilitiesMay set up plan by completing Form 5305-SEP. No IRS reporting required.May set up plan by completing Form 5304-SIMPLE or 5305-SIMPLE. No employer IRS reporting required. Bank or financial institution does most of the paperwork.Draft plan document and adoption agreement to set up plan. Annual filing of Form 5500 may be required. Plan sponsors have various administrative and fiduciary responsibilities.Plan sponsors have various administrative and fiduciary responsibilities. Matisse Capital provides day-to-day plan sponsor support. Recordkeeper provides recordkeeping and compliance services such as real-time compliance testing and Form 5500 preparation.
Withdrawals, loans, and paymentsAn employee may initiate a withdrawal at any time, subject to current federal income taxes and a possible 10% penalty if the participant is under age 59½.An employee may initiate a withdrawal at any time, subject to current federal income taxes. If under age 59½, employee may be subject to a 25% penalty if it's taken within the first two years of participation, and a possible 10% penalty if it's taken after the first two years.Can't take withdrawals until a specified event such as reaching age 59½, death, separation from service, or some other event as identified in the plan document. May permit hardship withdrawals, which may be subject to a 10% penalty if the participant is under age 59½.Can't take withdrawals until a specified event such as reaching age 59½, death, separation from service, or some other event as identified in the plan document. May permit loans and hardship withdrawals, which may be subject to a 10% penalty if the participant is under age 59½.
Investment choicesMutual funds, ETFs, and individual securities.Mutual funds.Mutual funds.Mutual funds. Company stock and self-directed brokerage accounts.
Employee contribution limitsFor the 2022 tax year, up to $6,000 ($7,000 for employees age 50 or older). For the 2023 tax year, up to $6,500 ($7,500 for employees age 50 or older).

This is the total amount the employee can personally contribute to all SEP-, Roth, and traditional IRAs each year.
$14,000 for the 2022 tax year ($17,000 for employees age 50 or older). $15,500 for the 2023 tax year ($19,000 for employees age 50 or older).

Cannot exceed 100% of compensation.

Employees aren't required to contribute in a given year.
$20,500 for the 2022 tax year ($27,000 for employees age 50 or older). $22,500 for the 2023 tax year ($30,000 for employees age 50 or older).

Cannot exceed 100% of compensation.

Can be either pre-tax or after-tax (Roth).
$20,500 for the 2022 tax year ($27,000 for employees age 50 or older). $22,500 for the 2023 tax year ($30,000 for employees age 50 or older).

Cannot exceed 100% of compensation.

Can be either pre-tax or after-tax (Roth).
Employer contribution limitsFor the 2022 tax year, up to 25% of the participant's compensation or a maximum of $61,000. For the 2023 tax year, up to 25% of the participant's compensation or a maximum of $66,000.

Contributions are deductible and aren't required every year.
Option 1: Match up to 3% of each eligible employee's compensation (which can be reduced to as low as 1% in any two out of five years).

Option 2: Contribute 2% of each eligible employee's compensation.

For the 2022 tax year, the maximum compensation used to determine this contribution amount is $305,000. For the 2023 tax year, the maximum compensation used to determine this contribution amount is $330,000.

Contributions are deductible and are required every year the plan operates.
For the 2022 tax year, up to 25% of compensation, not to exceed $61,000. For the 2023 tax year, up to 25% of compensation, not to exceed $66,000.

Contributions are deductible and aren't required every year.

For the 2022 tax year total contributions, including employer and employee contributions, cannot exceed $61,000 ($67,500 if age 50 or older). For the 2023 tax year total contributions, including employer and employee contributions, cannot exceed $66,000 ($73,500 if age 50 or older).
For the 2022 tax year, up to 25% of compensation, not to exceed $61,000. For the 2023 tax year, up to 25% of compensation, not to exceed $66,000.

Contributions are deductible and aren't required every year.

For the 2022 tax year total contributions, including employer and employee contributions, cannot exceed $61,000 ($67,500 if age 50 or older). For the 2023 tax year total contributions, including employer and employee contributions, cannot exceed $66,000 ($73,500 if age 50 or older).
Contribution optionsEmployer can decide whether or not to make contributions from year to year.Employee can decide how much to contribute. Employer must make matching contributions, or must contribute 2% of each employee's salary up to the set maximum.Business owner can contribute as employer and/or employee.Employee can decide how much to contribute. Employer can make additional contributions, including matching contributions, as set by plan terms.
Funding responsibilityGenerally, employer contributions only.Employee salary reduction contributions and/or employer contributions.Business owners can contribute as employer and/or employee.Employee salary reduction contributions and/or employer contributions.
Employee eligibility & minimum coverage requirementsGenerally, employees must be allowed to participate if they're 21 or older, earned at least $650 in the 2022 tax year or $750 in the 2023 tax year, and have worked for the same employer in at least 3 of the 5 past years.

Less restrictive requirements may be chosen by the employer as well.
No age restrictions. Employees must have earned at least $5,000 during any two prior years (consecutive or nonconsecutive) and be expecting to earn at least $5,000 in the current year (you can also choose less restrictive requirements).No common-law employees. Otherwise, no age or service restrictions.Based on employer plan rules. Generally, must be offered to all employees at least 21 years of age who worked at least 1,000 hours in the previous year.
Employers who can provide this optionAny business that doesn't currently maintain any other retirement plan.Any business with 100 or fewer employees that doesn't currently maintain any other retirement plan.Sole proprietors or partners with no common-law employees.Any business with one employee or more.
AdvantagesWorks well for business owners who prefer to provide a retirement benefit to all employees (including themselves) by making employer contributions.Great starter plan that encourages contributions from employees.Excellent method to maximize tax deferral. Can contribute as employer and employee.Great option if you're looking to offer your employees all the tax, savings, and retirement benefits of a typical 401(k).

triple-plus

Common Questions

The information presented in Common Questions is for the purpose of general education and does not address the investment nor legal considerations of any individual. The opinions are of Matisse Capital.

Limited Plan Reviews

A complimentary service provided by Matisse Capital, to highlight a few critical financial and fiduciary considerations.

Providing an assessment of:

  • Investment options benchmarked against peer group
  • Plan expenses compared to national benchmarks

To Get Started:

Please provide us with as many of the following documents as possible:

  • Summary Plan Description
  • List of investment options (including ticker symbols) and market values as of last quarter-end
  • Most recent Participant Annual Fee Disclosure
  • Investment Policy Statement (if the plan has one)

Please provide us with answers to the following questions:

  • Do you have any concerns with your current plan or providers?
  • Does your advisor sign off in writing as Co-fiduciary in your plan contract?
  • What would you want to improve about the plan?
  • What type of employee education is being done to encourage Retirement Readiness?
  • When did you last benchmark or review the plan?

Submit via email to info@matissecap.com.

Any information you provide to our team will be held confidential and used for the sole purpose of providing you an accurate Limited Plan Review.

One of our retirement plan specialists will respond to your request promptly.

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