Retirement Planning

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

2016/2017 $12,500
Age 50 & over: $15,500

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 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

 

  • 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

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