The RMD rules also apply to traditional IRAs and IRA-based plans such as SEPs, SARSEPs
, and SIMPLE IRAs, however, they do not apply to ROTH IRAs.
Note: Catch-up contributions for employer retirement plans are available only for plans that allow elective deferrals (401(k) plans, 403(b) plans, SARSEPs
, and SIMPLEs).
* An individual who is still working for a company with a qualified plan may postpone RMDs until actual retirement if the plan permits it; however, this delay does not apply to anyone who is a more-than-5% owner of the company, or to IRAs and IRA-based plans (e.g., SEPs, SIMPLE IRAs, SARSEPs
Additional project work will be supplemented by the Learn, Educate, Self-correct, Enforce (LESE) program; the Individual Retirement Arrangements program, which oversees payroll-deduction individual retirement accounts (IRAs), SEPs (simplified employee pension plans), SARSEPs
(salary reduction simplified employee pension plans) and SIMPLEs (savings incentive match plans for employees); and the Form 5500-EZ Delinquent Filer Penalty Relief program for one-participant plans.
Salary Reduction SEP (SAR-SEP): While new SARSEPs
may not be adopted after 1996, an employer who has 25 or fewer eligible employees and who adopted a salary reduction SEP (i.e., one funded through employee salary reductions) prior to 1997 may continue to operate the plan and may add new participants (up to the 25-employee limit).
* salary-reduction simplified employee pension plans (also called SARSEPs
The new SIMPLE plans are somewhat simpler to administer and explain than the SARSEPs
available under prior law, and SIMPLE IRAs are available to a broader range of employees (up to 100 employees instead of 25).
The new ERSA would consolidate 401(k), thrift, 403(b), and governmental 457 plans, as well as SARSEPs
(Salary Reduction Simplified Employee Pension) and SIMPLE (Savings Incentive Match Plan for Employees) accounts.
Also, the 2002 elective deferral limit for 401(k) plans, 403(b) annuities (for employees of public schools and 501(c)(3) organizations), section 457 plans (for employees of state or local governments or tax-exempt organizations) and SARSEPs
(salary reduction simplified employee pensions) is $11,000 (up from $10,500 for 2001).
Effective for 1997, these new plans replace salary-reduction simplified employee pensions (SARSEPs
); after 1996, no new SARSEPs
may be established (although existing ones may continue to receive contributions).
are repealed for years after 1996, but if already established, they may continue to receive contributions.
are generally available to companies with 25 or fewer eligible employees.