Q&A on Roth 401(k)s


Planning for your own retirement sometimes gets pushed to the back burner when you’re busy running a business. Take a few minutes to learn more about a valuable retirement planning option you can set up for yourself and your employees – a Roth 401(k).

What is a Roth 401(k) plan?

A Roth 401(k) plan is simply a traditional 401(k) plan that permits contributions to a designated Roth account within the plan. Roth 401(k) contributions are made on an after-tax basis, just like Roth IRA contributions. This means there’s no up-front tax benefit, but if certain conditions are met both your contributions and any accumulated investment earnings on those contributions are free of federal income tax when distributed from the plan.

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Article brought to you by Altra Financial Advisors.

Cutting Payroll Expenses with Reloadable Prepaid Cards


Why are scores of businesses nationwide using prepaid debit cards to pay employees and streamline payroll administration?

These businesses are finding that managing payroll can be easy and cost effective with branded reloadable prepaid debit cards. They offer employers an efficient way to reduce costs, deliver timely payments and achieve 100% electronic payroll.

Streamline costly and time-consuming payroll administration.

Prepaid debit cards give businesses the flexibility to direct payroll, commissions or other payments to a prepaid debit card rather than expensive paper checks. Employees receive a personalized, reloadable card. There are clear benefits for both you and your employee.

 Employer Benefits

  • Immediate and sustained savings – There’s no need for paper checks, postage, reconciliation or replacement costs for lost checks.
  • Works with existing direct-deposit processes – Funds can be deposited into an employee’s prepaid card account using standard ACH funding.
  • Enables 100% electronic payments – Improves participation rates in direct deposit and delivers payroll on time.
  • Provides an effective direct-deposit alternative – A great way to pay employees who don’t have traditional bank accounts.
  • Can be used for any and all employee payments – Payroll, bonuses, commissions or any other recurring-payment needs.
  • Federal and state compliance – Programs are fully compliant with state and federal regulations, eliminating employer responsibility for state escheatment.

Employee Benefits

As secure and convenient as direct deposit – Funds are deposited automatically, which eliminates trips to the bank or check-cashing fees for employees without bank accounts.

  • Easy access to funds – Cardholders can make purchases or get cash anywhere Visa or MasterCard debit cards are accepted.
  • Multiple ways to track transactions and balances – Spending can be tracked online, by phone, or mobile apps.
  • 24/7 customer support – Customer service and account information can be accessed at any time.

Working Capital: Your Business Lifeline

For businesses of all sizes, working capital is essential to meet short-term debt obligations and remain financially viable. To make this easier, the SBA has streamlined and simplified its CAPLine program, which provides working capital lines of credit to help small businesses with short-term working capital needs.

Small businesses can secure a line of credit using account receivables, inventory or purchase orders and small business owners are no longer required to pledge personal assets to secure a loan. Applicants must qualify under Standard 7(a) requirements and sell on credit and create accounts receivable.

 Use of Proceeds

  • Finance short term working capital/operating needs
  • May refinance existing short-term revolving debt
  • May not be used to pay delinquent withholding taxes or similar trust funds, for floor planning or to acquire fixed assets

 General Requirements

  • Maximum line amount $5 million
  •  Maximum guaranty percentage is 75% for loans of $150,000+ and 85% for loans of less than $150,000
  •  Maximum interest rate is the same as Standard 7(a)
  •  Maximum maturity is 10 years
  • Guaranty Fee is the same as Standard 7(a) and fees may be paid from loan proceeds

If you think a CAPLine revolving line of credit is a good fit for your business, call Altra, your preferred SBA Lender.