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401k For Expedite O/O and Driver's

G

guest

Guest
I'm looking to Start A 401k For all the driver's we have and anyone that want's to be in it. My plan is To have My insurance Company Handle the 401k and the Driver's would just have to send there money into them. The plan is to have as many Driver's or owner paying into it So it would grow. I know this may sound crazy but think about it. if it got up to 1000 driver putting in $100.00 per month in a 401k that's 1.2 million dollars a year to be invested. That's only 25.00 a week per driver.

let me know What you all think I have a meeting set up with them next week.



Drive safe

Dave Mayfield
FEDExCC/Roberts Express O/O Since 3/1/1995
C1847,C2045,D3397,D5047
 
G

guest

Guest
I guess Everyone has there own 401K

Drive safe

Dave Mayfield
FEDExCC/Roberts Express O/O Since 3/1/1995
C1847,C2045,D3397,D5047
 
davekc

davekc

Senior Moderator
Staff member
Fleet Owner
401K contribution amounts are based on earnings, while a IRA is a set amount. I quess some would depend on a person or teams ability to save and at what amounts.
Both have different tax strategies depending on how they are used.
In many instances, some think of the 401k as a company sponsored program that has matching contributions. In this case it would be a contribution without a match? Am I understanding that correctly?
Or, is this a vehicle for drivers where the owner would match a percentage?
There likely is a fee to administrate it, I would ask them what that amount is in your meeting and how they handle that. There is alot of different options on that one.
Just thinking out loud.






Davekc
owner
22 years
PantherII
EO moderator
 
G

guest

Guest
Thanks Dave, Don't know much about the 401k thing. I just thought it would be a good Ideal for all the Driver's to have a way to make there money Grow.


Drive safe

Dave Mayfield
FEDExCC/Roberts Express O/O Since 3/1/1995
C1847,C2045,D3397,D5047
 
T

tec1959

Expert Expediter
Hi as i understand a 401K is with a company paying in part a percentage of the employee salary,Notice the word employee.An IRA is nothing more than a saving account started with a small amount and a amount invested every month.I think I'm right on this...
 
davekc

davekc

Senior Moderator
Staff member
Fleet Owner
IRA is a tax deferred investment or savings plan. I would highly recommmend one look into these as they are a great savings and investment tool.
401K's are now available to the self employed as well with some differences if compared to a 401k company sponsored plan.
A google search on both will bring up a ton of information as well as IRS sites ect.







Davekc
owner
22 years
PantherII
EO moderator
 
LDB

LDB

Veteran Expediter
Retired Expediter
Listen to Dave Ramsey on XM for a while or better yet call in to discuss options. I believe unless the employer is going to match a portion a 401 isn't the best solution. A self directed Roth IRA might be better for most. It depends on age and other factors as well. That's why I leave all that to Jon. He's the expert and takes care of it properly for me.

Leo Bricker, 73's K5LDB, OOIDA 677319
Owner, Panther trucks 5507, 5508, 5509
Highway Watch Participant, Truckerbuddy
EO Forum Moderator
----------
Support the entire Constitution, not just the parts you like.
 
davekc

davekc

Senior Moderator
Staff member
Fleet Owner
The great advantage of the 401k to the self employed is that you can invest in one and still max out your Roth.
I agree, Dave Ramsey is a good source for some of this information.
Bruce Williams touches on these topics from time to time as well.
He seems to concentrate on real estate just alittle more than Ramsey.
Suze Ormond also does a show on personal finance but it has been a long time since I have heard or watched it.





Davekc
owner
22 years
PantherII
EO moderator
 
ATeam

ATeam

Senior Member
Retired Expediter
Tec1959 is correct. 401k plans are for employees, not self-employed people. In a previous career I worked with certain employers, plan administrators and plan participants to set up defined contribution and defined benefit plans and the underlying investment vehicles.

These things are very complex and the rules change every so often. If you are wanting to set up a qualified retirement plan of any sort for people other than yourself, get professional help and go into it with your eyes wide open.

Every now and then, you hear in the news about a big company or state or local governemt agency retirement plan that failed. When that happens, legislators respond with knee-jerk laws designed to fix the problem and make sure it never happens again. The result is a highly complex patchwork of laws and rules that can easily trap a well-meaning but unaware person who takes it upon himself or herself to set up a retirement plan for others.

Be careful that you do not plan-design your way into a maze of administrative and financial obligations that you cannot easily escape.

Setting up an IRA or SEP-IRA for yourself is one thing. Setting up a retirement plan for people other than yourself is a journey into a minefield.
 
davekc

davekc

Senior Moderator
Staff member
Fleet Owner
Tec1959 is correct. 401k plans are for employees, not self-employed people. In a previous career I worked with certain employers, plan administrators and plan participants to set up defined contribution and defined benefit plans and the underlying investment vehicles
================================================
Are you sure you were a financial planner?
What were you planning?







I don't know Phil? I am glad you are not currently a financial planner. I would be broke. Then again, I have oceanfront property in Vegas for sale. Apparently you are not that informed on investment driven issues.

Just a simple link.



http://personal.fidelity.com/products/retirement/getstart/newacc/keogh.shtml.cvsr
===================================
A simple google or yahoo search will bring up a pile of information.
Yes 401K's are available to the self employed.





Davekc
owner
22 years
PantherII
EO moderator
 
R

RichM

Veteran Expediter
Charter Member
Perhaps I am getting old but Dave Ramsey and Bruce Williams basically ##### me off these days. All Dave wants to do is to get people to live within their means and live on a budget. If you can't do that all of the advice in the world won't help you. It's not very nice but I do have to laugh at people when they call in and you hear how they have a combined income of $24K but have a $40K Suv and a $4k TV and so on.

Lately it seems Bruce Williams just refuses to allow anyone to finish a sentence without him butting in and saying, "Wait a Minute".. then off he goes on a tangent.

Spend less then you earn,so true in our business. A $70K D unit makes the same revenue as a $200 K D unit, you can make payments or have a decent home,decent auto plus sock some away from time to time. Some people feel they don't need a home so they put all of their asests into a vehicle that depreciates 25% every year. They they brag about their great ride,well after a few years their great ride is not so great and what do they have, Zilch. Buy and purchase wisely.
 
davekc

davekc

Senior Moderator
Staff member
Fleet Owner
Rich,
Your last sentence says it all. Simple, but hard to follow for many.
Even more so if you are a self proclaimed financial planner.






Davekc
owner
22 years
PantherII
EO moderator
 
G

guest

Guest
Well, My Ideal Don't sound like it can be done. I wish FedEx, Panther,Tri-State, Landstar and so on would do something like this for the O/O and Driver's.


Drive safe

Dave Mayfield
FEDExCC/Roberts Express O/O Since 3/1/1995
C1847,C2045,D3397,D5047
 
Moot

Moot

Veteran Expediter
Owner/Operator
A 401k plan is for employees. You can have both a 401 and an IRA or similar account if you are an employee. If you are self imployed no 401. Anyone can open an IRA and begin reaping the tax benifits and saving for retirement.
 
Moot

Moot

Veteran Expediter
Owner/Operator
Dave,
If I made three lefts then I would be right. But I'm wrong. You are right. I am not set up as an S corp or LLC. I file jointly, so this would not help me. I am my wife's tax deduction. I can see how this would be helpful to others. Especially fleet owners. Is this something new in the last 2 years.
Also if you are set up as a corporation and pay yourself a salary ypu could have a 401k, make contributions and have the corp. match those contributions.
 
davekc

davekc

Senior Moderator
Staff member
Fleet Owner
I was kidding on your three lefts.
If you are a sole proprieter or your wife is, then it could be used assuming she doesn't already have a plan.
I believe this has been available for several years but most people aren't aware of it. The good news is neither one of us has a bio that claims we are a financial planner.




Davekc
owner
22 years
PantherII
EO moderator
 
B

blacktiger

Expert Expediter
Wow,
dont know much about financal plans but it looks like the Team has been exposd again as the Great Pretender.
thats pretty nice i think

George
 
R

RichM

Veteran Expediter
Charter Member
I have met individuals who claim to be Financial Planners but what they really are is Life Insurance salesman. They present you with a financial plan that when you exit this world someone gets bucks.

Many States allow you to call yourself a Financial Planner with no qualifications whatsoever. Sombody can read a magazine such as Smart money and decide they are a expert in Financial planning.

On open forums such as this there is no way to prove out what someone claims to be until they make an obvious error such as what happened in this thread. I could say I was a past NFL player,I could talk about the plays the team ran and so on. But if I said I played for the Pittsburgh Penquins vs the Steelers everyone would know that I was posting under false pretenses,but I didn't know the difference.

To get back to the original topic,I have an S Corp. I do both 401K's and personal IRA's.
 
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