Retirement: More CPAs may provide 401(k) plans

February 15, 2008

An informal poll of certified public accountants found that more of them may get into the business of retirement planning.

An informal poll of certified public accountants found that more of them may get into the business of retirement planning, by offering 401(k) plans to their clients, according to a recent article in Investment News. The logic behind this is that clients already have formed a bond of trust with their CPA, most of whom already help fill out tax papers for retirement accounts.

In working with small businesses, CPAs would likely take a cautious approach to 401(k) investing, to avoid aggravating and losing a client, or would hand over the choice of investments to a professional retirement plan administrator and third-party record-keepers. "These services are well-suited to CPAs since they're a mixture of tax law, planning, and accounting," says CPA Sherman Doll of Capital Performance Advisors, in Walnut Creek, CA.