Member/Community News

SMALL BUSINESS PLANS Still available through tax filing 2012: SEP IRAs are special IRAs that accept company contributions on behalf of the IRA holder. A business may establish the SEP plan by completing IRS form 5305-SEP. After the plan is in place, employees of that business that meet specific age, work experience, and earnings requirements may establish SEP IRA accounts that can accept company SEP contributions. SEP IRA features: • Only a business owner can establish a SEP plan. • 2012 contribution limit is the lesser of $50,000 or 25% of eligible compensation. Special calculations apply to sole proprietors, partners and LLC members. • SEP contributions are discretionary and flexible. • SEP plans are 100% vested. • SEP contributions may be deductible for the business and are not taxable to the participant. • SEP plans may be established and funded up to the employer’s income tax filing deadline plus extensions. SIMPLE IRAs are special IRAs that accept both company and employee contributions. To be eligible for a SIMPLE plan, a business must not have more than one employee. Once a SIMPLE plan is active, employees of that business that meet work experience and earnings requirements may establish SIMPLE IRA accounts that can accept company and employee SIMPLE contributions. SIMPLE IRA features: • Only a business owner can establish a SIMPLE plan. • SIMPLE plans may be established using the 5304-SIMPLE plan. • 2012 employee contribution limit $12,500 + match • Employees 50 years old and older may make a $2500 catch-up contribution. • Company SIMPLE contributions are mandatory and may be either a matching or non-elective formula. • Matching formula: Lesser of 100% of the employee contribution or 3% of annual salary (May reduce match to 1% in two out of five years) Non-elective formula: 2% of annual salary of covered compensation limit is $245,000 in 2010 for all eligible participants Employer contributions are tax deductible Self Employed SOLO 401k Are you looking for a way to maximize your retirement savings by the end of 2013? If you are a business owner with new or part-time employees, other than your spouse, the Solo 401(k) plan may be the right plan to help you do just that. With this low cost product, you have the potential to contribute up to $51,000 annually to your personal retirement account through a combination of salary deferral and profit sharing contributions. And contributions are discretionary, so that you the flexibility to consider both the financial needs of your business and your personal retirement goals. The Solo 401k is available using a great variety of investment vehicles including our “all star” recommendations of underlying investments to better optimize returns, through peer and benchmark research. You may choose from a wide spectrum of funds, ranging from aggressive to conservative, depending on your specific investment goals. contact : Brenda Bagonis-Cooke 215 491 4346