Employee Benefits

A Simple IRA functions as a Solo 401k for sole proprietorships, partnerships, or corporations (C or S) with multiple employees. One of two matching criteria must be met in order for a corporation to offer a Simple IRA for its employees. You can either offer all participating employees a 3% match or offer all employees 2% of their salary regardless of if they participate in the IRA. 

The Simple IRA allows for a $13,500 salary deduction for employees under the age of 50 and $3,000 for those over the age of 50 on their taxes. 

Managerial costs for the Simple IRA are low compared other plans like the 401k, which is why this is a good option for small to medium size business. 

An SEP IRA is a retirement savings plan established by employers (including the self-employed) for the benefit of their employees & themselves & allows employers to make tax-deductible contributions on behalf of eligible employees.

SEP’s are beneficial because they’re easy to set up, have low administrative costs, & allow an employer to determine how much to contribute each year.

SEP’s also have higher annual contribution limits than standard IRA’s. SEP’s are fundamentally considered a traditional IRA with the ability to receive employer contributions. A major benefit of an SEP is that employer contributions are immediately vested. 

Keogh plans are retirement plans for self-employed people as well as unincorporated businesses, such as sole proprietorships and partnerships.

The IRS refers to Keogh plans as qualified plans, and there are two types: Defined-benefit Plans include profit-sharing plans and money purchase plans. Defined-contribution Plans are also known as HR(10) plans.

Keogh plans can invest in the same set of securities as 401k’s & IRAs including SEP/IRA’s, stocks, bonds, certificates of deposit and annuities.

A 457 is a code section of the IRS that currently allows salary deferrals (reductions) up to $19,500 per year with up to $6,500 additional for those contributors at least 50 years old. Differing from a 403b, a non-profit or educational institution may choose one 457 program.

Funds cannot be distributed until age 70 or death or unforeseen emergency. More importantly, if you severed from employment you do not have to wait until 59 ½ to receive your money without IRS penalty in a lump sum or distributions.

An SEP IRA is a retirement savings plan established by employers (including the self-employed) for the benefit of their employees & themselves & allows employers to make tax-deductible contributions on behalf of eligible employees.

SEP’s are beneficial because they’re easy to set up, have low administrative costs, & allow an employer to determine how much to contribute each year.

SEP’s also have higher annual contribution limits than standard IRA’s. SEP’s are fundamentally considered a traditional IRA with the ability to receive employer contributions. A major benefit of an SEP is that employer contributions are immediately vested. 

Keogh plans are retirement plans for self-employed people as well as unincorporated businesses, such as sole proprietorships and partnerships.

The IRS refers to Keogh plans as qualified plans, and there are two types: Defined-benefit Plans include profit-sharing plans and money purchase plans. Defined-contribution Plans are also known as HR(10) plans.

Keogh plans can invest in the same set of securities as 401k’s & IRAs including SEP/IRA’s, stocks, bonds, certificates of deposit and annuities.