Retirement Planning

Our retirement plans offer a tax deduction for the business while encouraging their employees to save for retirement without large transaction fees you would incur with an investor or 401k plan.

Product Features	Simple IRA	SEP IRA
Maximum Participants	100 Participants	Unlimited Participants
Annual Employee Deferral Limit	2021 $13,500 Age 50 & over: $16,500	No employee salary deferral allowed
Annual Employer Match Contribution	The employer must annually choose one of the contribution methods below: 3% Matching Contribution - match of employee's elective deferrals on a dollar-for-dollar basis up to 3% of the employee's compensation Instead of a matching contribution, an employer can make non-elective contribution of 2% for each employee	100% employer funded; may contribute up to 25% of 2020: $285,000 compensation ($57,000 max) 2021: $290,000 compensation ($58,000 max) Employer chooses the percentage annually
Employee Eligibility	If $5,000 was earned in compensation in any 2 preceding years & plans to earn $5,000 during current year	Employer creates employee eligibility requirements, but maximum restrictions an employer can require are: Age: 21 Employed: 3 of the last 5 years Earned $600.00/year
Acces to Funds	Immediate access, however a penalty can apply Distributions taken within the first two plan years and under the age of 59.5, will be subject to a 25% IRA penalty Distributions taken after the two year period and under the age of 59.5, will be subject to a 10% premature distribution penalty	Immediate access; however a penalty can apply; distribution taken under the age of 59.5 will be subject to a 10% premature distribution penalty
Deadline for Establishing	Notify employees of the match option for that year within 60 days before plan year	Employer must establish plan by tax filing deadline, plus extensions

IRA	Simple IRA
Maximum Participants	100 Participants
Annual Employee Deferral Limit	2016/2017 $12,500 Age 50 & over: $15,500
Annual Employer Match Contribution	The employer must annually choose one of the contribution methods below: 3% Matching Contribution - match of employee's elective defferrals on a dollar-for-dollar basis up to 3% of the employee's compensation Instead of a matching contribution, an employer can make nonelective contribution of 2% for each employee
Employee Eligibility	If $5,000 was earned in compensation in any 2 preceding years & plans to earn $5,000 during current year
Acces to Funds	Immediate access, however a penalty can apply Distributions taken within the first two plan years and under the age of 59.5, will be subject to a 25% IRA penalty Distributions taken after the two year period and under the age of 59.5, will be subject to a 10% premature distribution penalty
Deadline for Establishing	Notify employees of the match option for that year within 60 days before plan year

IRA	SEP IRA
Maximum Participants	Unlimited Participants
Annual Employee Deferral Limit	No employee salary deferral allowed
Annual Employer Match Contribution	100% employer funded; may contribute up to 25% of 2016: $265,000 compensation ($53,000 max) 2017: $270,000 compensation ($54,000 max) Employer chooses the percentage annually
Employee Eligibility	Employer creates employee eligibility requirements, but maximum restrictions an employer can require are: Age: 21 Employed: 3 of the last 5 years Earned $600.00/year
Acces to Funds	Immediate access; however a penalty can apply; distribution taken under the age of 59.5 will be subject to a 10% premature distribution penalty
Deadline for Establishing	Employer must establish plan by tax filing deadline, plus extensions