Retirement Plan Census Workbook for Growing Businesses
Prepare employee, ownership and cash-flow information before comparing business retirement plan proposals.
Begin with who works in the business
Retirement planning needs more than the owner's desired contribution. Prepare a current workforce census for the plan professional, including employment dates, compensation and work patterns. Identify related businesses and ownership relationships for review. Eligibility, aggregation and contribution rules depend on the plan and the actual facts. A proposal based on an incomplete census may not describe the cost or requirements of the plan the business can actually adopt.
Make the census usable
Use a secure file with a unique employee identifier, hire date, termination date if relevant, payroll compensation, hours information and current plan participation. Have payroll reconcile compensation totals to its reports. Use a separate ownership schedule for each business. Share personal identifiers only through the secure process the engaged professional provides. A public worksheet or email thread is not the place for sensitive employee information.
Illustrative growth scenario
A business has one owner and expects to hire two people during the coming year. Instead of comparing proposals using only the owner's current compensation, ask for scenarios that include the planned hires and alternative start dates. Record which facts are known and which are forecast. The point is to understand how growth changes funding and administration; this example does not establish eligibility or a contribution amount for any specific plan.
Compare complete proposals
Ask each provider to identify the plan type, setup cost, annual administration, expected employer funding, employee coverage considerations and ongoing responsibilities. For a plan that requires actuarial work, ask who provides it and how funding expectations are determined. Separate a tax deduction estimate from the cash required to fund the plan. Review a lower-profit scenario as well as the growth case before committing to ongoing obligations.
Keep decisions coordinated
Confirm who handles adoption documents, payroll elections, deposits, recordkeeping and filings. Put each deadline on a schedule approved by the plan professional. Save the final census version used for the recommendation. Revisit the plan when hiring, compensation, ownership or cash flow changes materially. This workbook helps the professionals work from the same information and does not calculate legal contribution limits.
Records to prepare
- Reconciled workforce census
- Related-business ownership map
- Payroll compensation reports
- Existing plan documents
- Current and lower-profit funding scenarios
- Provider scope, fees and responsibility schedule
Questions for your next review
- Which assumptions need verification before making a decision?
- Who owns the calculation, implementation and reporting?
- What change in the facts should trigger another review?
Primary reference
IRS guidance for this topic. Verify the applicable year and facts with your advisor.
Focused implementation guides
Resolve the related evidence question before carrying a planning assumption into implementation.
- Retirement census reconciliation: A business considers a retirement contribution while employee records differ between payroll and administration.
- Accountable plan travel advances: An employee receives travel money before the itinerary and receipts are complete.
- Owner retirement funding cash calendar: An owner wants to reserve cash for retirement contributions alongside payroll and tax payments.