* Some of the most popular types of retirement plans used by small businesses include SEPs (simplified employee pensions
), SIMPLE (savings incentive match plan for employers) IRAs, and 401 (k) plans.
Most of the plans available to small businesses--simplified employee pensions (SEPs), salary reduction simplified employee pensions
, SIMPLE IRA plans, SIMPLE 401(k) plans, regular 401(k)s, profit-sharing plans, money purchase pension plan, Keogh plans, defined benefit plans, defined contribution plans, and employee stock ownership plans--are subject to the minimum coverage requirements, minimum vesting standards, the actual deferral percentage test, the non-discrimination requirements, and the top heavy plan requirements.
By comparison, simplified employee pensions
(SEPs) or profit-sharing Keogh plans would allow 2009 contributions for the self-employed to the extent of the lesser of 20% of earnings or $49,000.
These include: tax-qualified retirement plans, tax-deferred annuities, simplified employee pensions
, and nonqualified retirement plans.
It offers, for most, only a base level of income, which many retirees supplement with savings from employer-sponsored plans, such as pension plans, 401(k) plans, 403(b) plans, Simplified Employee Pensions
(SEPs) and Savings Incentive Match Plans for Employees (SIMPLEs).
But the tax would apply to income from individual retirement accounts, or IRAs, including Roth, simplified employee pensions
and savings incentive match plans for employees.
They also describe the different types of plans, including top-heavy plans, 401 (k) plans, employee stock ownership plans, multiemployer plans, Roth IRAs, simplified employee pensions
, saving incentive match plan for employees, rollovers, and tax-sheltered annuities.
The book covers establishing IRA's, converting IRAs, the interaction of IRAs with other types of plans, explanations for establishing and maintaining IRAs and simplified employee pensions
, the use of IRAs to fund benefits and special requirements.
The IRA Resource Guide for Small Business Owners and Individuals contains information about traditional and Roth IRAs and covers IRA-based retirement plans for employers, including simplified employee pensions
(SEPs), SIMPLE IRAs, and payroll deduction IRA plans.
Simplified Employee Pensions
(SEPs): The second very popular plan lets you set up a generous IRA for you and your employees.
Department of Labor offers two brochures for small business owners that can help them decide on the right retirement plan: Simplified Employee Pensions
(SEPs)--What Small Businesses Need to Know and Savings Incentive Match Plans for Employees of Small Employers (SIMPLE)--A Small Business Retirement Savings Advantage.
The JCWAA also increased the annual limit for employer SEP (simplified employee pensions