​by Eric Schaefer, CFP®, Financial Advisor, Evermay Wealth Management
In my last post, I gave an overview of common retirement plans available to businesses with two or more employees. Self-employed professionals can also benefit from the current year tax savings, future employee attraction and the diversification benefits of an employer sponsored retirement plan. While most account types available to groups are also available to self-employed business owners, there are a few beneficial differences. Below, I touch on a few popular choices and why they might make sense for your business:
SEP IRA:
Simplified Employee Pension (SEP) IRA’s are a variation of individual retirement accounts set up by an employer for its employees. These are particularly popular with self-employed individuals with sporadic cash flow. For 2015, the maximum contribution is $53,000. Contributions are typically limited to about 20% of business income, adjusted for self-employment tax. SEP IRA’s are different than many other plan types in that contributions are not mandatory and can take place at any time before the filing of the tax return (even if you extend to October 15th). The ease of setup, low administration cost and limited reporting requirements make SEP IRAs a popular choice for solopreneurs.
Individual 401(k) Plan:
Also referred to as a Solo-K plan, an individual 401(k) plan is exactly what it sounds like. Contributions are made by both the employee and employer, allowing for higher contribution limits than an employee could otherwise contribute. Employee contributions are limited to $18,000 per year ($24,000 if you’re over 50). If cash flow and profit permits, a non-elective employer contribution can be made to up to $35,000; a combined total of $53,000 ($59,000 if 50+). The non-elective contribution is based on self-employment income or W-2 if the business is incorporated and paying a salary. An important note: Individual 401(k) accounts MUST be set up before December 31 of the year in which the contribution will count; but the contributions need not be made at that time.
One reason individual 401(k) plans have gained popularity in recent years is because of a planning strategy used by many contractors and consultants who are also employed elsewhere. If they have consulting income and also set up an individual 401(k), they may have the opportunity to contribute an additional “non-elective” contribution of up to $35,000. For a Virginia taxpayer in the 35% tax bracket, that’s an immediate tax savings of $21,597! There are limitations based on business ownership and control, make sure to get an expert’s opinion if this applies to you.
Defined Benefit Pension:
As I mentioned in my first blog entry, pensions may have higher contribution limits, leading to more tax savings for a business owner. In most qualified accounts, the IRS sets blanket limitations annually. With a defined benefit pension, the IRS punts this responsibility to actuaries. The actuaries make their calculations based on your age, income, term of service and intended annual benefit. As you can imagine, a high income earning 63 year old with a starting plan balance of $0 may be able to make contributions well into the six figure range. While these plans cost a few thousand dollars to set up, a client of mine recently saved over $90,000 in 2014 taxes by setting up defined benefit plan. Funding a pension in does not obligate you to take the balance as an annuity at retirement, as you have the option of rolling it into an IRA.
Other Plans:
In the past, retirement plans for individuals were referred to as “Keogh Plans”. These plans aren’t as common anymore as they are less flexible and more costly to administer than SEP IRA’s but are subject to the same contribution limitations. Keogh plans with a defined contribution percentage are required to meet this contribution each year or be subject to a penalty; SEP IRA’s do not have this requirement.
SIMPLE IRA plans were also popular in the past but are still present in many businesses. As the name suggests, they’re simpler to set up than a traditional 401(k) but are limited to lower contribution limits of $12,500 ($15,500 if 50+). In addition to the employee contribution, the business can provide a match of up to 3%. These plans are not popular for self-employed savers as they have lower contribution limits and a small but rigid matching amount.
Conclusion:
While I have only touched on a few of the available options, each saver has a unique financial picture that will determine which plan type is most appropriate. Many business owners and self-employed professionals struggle with saving and planning for retirement, but it’s never too late to start.
Eric Schaefer, CFP® is a Financial Advisor with Evermay Wealth Management, an independent fee-only investment advisory firm in Arlington, VA. Eric can be reached by e-mail at ESchaefer@evermaywealth.com or by phone at (703) 822-5696. 

by Dr. Sandra L. Romano, AuD, CCC-A, FAAA, Sonus Arlington Hearing Center
Earbuds can cause hearing loss! Did you know that nearly 50% of people ages 12 – 35 years listen to unsafe levels of sound through personal audio devices such as cell phones and MP3 players? Once the damage is done to your ears, there is nothing that can be done to reverse it.
There are a couple of important factors that determine unsafe levels of sound: the loudness of the sound and the length of time that you are exposed to the sound. The US National Institute for Occupational Safety and Health (NIOSH) has a recommended standard: any sound over 85 dB for more than 8 hours will cause damage to your ears. Increase the level by 3 dB and the damage will begin in 4 hours. For every 3 dB of increased intensity, the amount of time you can be exposed decreases by half. Most personal audio devices can produce sounds up to 105 dB or more. At maximum volume, we should be listening for less than 15 minutes. TURN DOWN THE VOLUME!
What can you do to protect your ears? 

1. Use noise cancelling earbuds - they can reduce the need to raise the volume of the listening device. 
2. Keep the volume below 60%.
3. If you can’t hear what is going on around you, the volume is too high.
4. If your friends tell you that you are talking more loudly than usual while streaming audio, your volume is too high. Turn down the volume.
5. Follow steps 1-4 above – your future ears will thank you.​

​By David Notari, CEO, Innovation Health
It’s that time of year again. Fall brings a chill in the air, pumpkin-spiced everything, and of course, healthcare enrollment discussions!

As an Arlington business leader, you are probably in the early stages of meeting with your HR team to think through employee coverage options for the coming year. Like many employers across the U.S., you are also likely adjusting your coverage as a result of the Affordable Care Act’s (ACA) Cadillac Tax, which raises health insurance rates for robust plan offerings. As you and your team gather information to make the best decisions for your employees, here are a few key considerations for keeping costs down and ensuring quality care options in 2016.

Understand Your Workforce   
Large employers obviously have to serve the healthcare needs of a wide range of people, but even large workforces have unique characteristics that must be analyzed prior to plan selection. For example, say your Northern Virginia consulting firm employs a high number of young professionals. Higher cost plans with a wide range of services may initially look more appealing, but if your team of healthy twenty-somethings isn’t going to use those services, the costs won’t make sense.
A simple employee health benefits survey can do wonders for better understanding the needs of your workforce. The data on what folks truly value could surprise you, and is invaluable to selecting the right plan for your team.

Dig Into Usage Data
Employee utilization rates are another great source of information to review as you move through plan selection. Understanding the health services that made a difference to folks in 2015 is critical to choosing the right options for 2016.
One particularly important issue is identifying how many of your employees have a primary care physician (PCP). Unnecessary emergency room visits are one of the biggest costs to the healthcare system, and educating employees on when to use their PCP and when to use the emergency room can deliver enormous savings for large employers. Many of today’s health plans offer mobile applications that can help your employees make these decisions on the fly, and find the closest Urgent Care Centers in the event they are needed.

Choose a Network that Can Handle Your Geography
Many large employers headquartered in Northern Virginia have satellite offices and remote employees spread throughout the country. To make sure that all of them receive access to the same levels of consistent, quality care, look for a health insurance provider with a national network. Your HR team will also thank you for being able to simply and easily administer coverage to folks in different geographies from the same plan. 
A national network also provides your people with a wider range of options, particularly in cases where a major procedure is required. The ability to evaluate a variety of doctors and specialists in a number of locations is extremely important. I know from having both of my knees replaced last year that this process isn’t easy, but the ability to research a number of surgeons across the Mid-Atlantic region was critical to the great care I received, and to my peace of mind.

Provide Innovative Options for Your Most Vulnerable Employees
Folks dealing with serious, ongoing health issues obviously have a different set of needs than those that get a check-up once a year. As you review plan options for the coming year, it’s important to keep the needs of these people in mind, and prioritize providers that offer care coordination and disease management services.
For example, if an employee has diabetes, these services can be customized to guide their entire care experience, including tracking upcoming appointments, accessing necessary medication information, and ensuring that treatment is completed. This end-to-end care management not only helps your employees get well faster, but it helps them proactively manage their ailment in a way that reduces the need for redundant services in the future.

Increase Employee Satisfaction with Easy-to-Use Technology
Finally, emerging technology is empowering consumers to take control of their healthcare decisions
Emerging tools are helping people instantly search for the best and most cost-effective doctors and services in their area. The Yelp model of online research has come to healthcare, and this instant access to critical information is something employees truly value, and should be at the top of your list when choosing a plan.
As the health care landscape continues to evolve and shift so should the way we find, select, enroll and manage our health insurance plans. By following these recommendations, and keeping these best practices for cost savings and selecting quality plans in mind, you can ensure you continue to find the very best options for both your company and employees.