Retirement Plan Contributions

These are the 2014 contribution limits

IRA’s & SEP’s are easy to set up and maintain. If your business has employees and/or you want to match contributions (tax deductible employer contributions), Simple-IRA’s &  PSP’s are less expensive than SEP’s & 401K’s.  DBP’s offer the highest contribution limits and contributions are required for all employees.  These are also the most expensive to set up and maintain (tax deductible, of course).

Type of Plan	Last date for contribution	Maximum Contribution
Traditional  & Roth IRA	Due date of individual tax return (Not including extensions)	$5,500 + $1,000 if over 50
Simple (Savings Incentive Match Plan for Employees)-IRA	Due date of individual tax return (plus extensions)	$12,000 + $12,000 (employer match)+ $2,500 and employer match  of same if over 50. Employer must match employee entire contribution (up to  3% of employee earned income) or  flat 2% of employee earned income non-elective (did  not contribute to the plan)
SEP (Simplified Employee Pension)-IRA	Due date of employer’s tax return (plus extensions)	Smaller of $52,000 or 25% of participants taxable compensation
Traditional, ROTH, & Simple 401K	Due date of employer’s tax return (plus extensions)	Smaller of $17,500 or 100% of participants taxable income  + $5,500 if over 50. Simple 401K is $12000 + $2,500 if over 50.
PSP (Profit Sharing Plan)& KEOGH	Due date of employer’s tax return (plus extensions)	Smaller of $52,000 or 25% of participants taxable compensation
DBP (Defined Benefit Plan)	Due date of employer’s tax return (plus extensions)	Up to $210,000 or the amount needed to provide an annual retirement benefit no larger than 100% of the participants average taxable compensation for his/her highest three consecutive years

For those business owners who have non-employed spouses (to save on payroll taxes) you can contribute $5,500 to a separate Spousal IRA + $1,000 more if the spouse is over 50. The spouse must have a separate IRA, the contributing spouse must have earned income (from wages) equal to or greater to the contributed amount, and the amount is reduced accordingly if the spouse participates in any other Qualified retirement plan (QRP).

Most brokerages can set these up.

You'll thank me for reading this part: Every situation is different. So, spend some time on your financial goals & objectives before you set-up or rollover any of these into your small business.

Some useful IRS publications are:

• IRS Publication 560, Retirement Plans for small businesses
• IRS Publication 590A, Individual Retirement Arrangements

Get  & keep the lifestyle you deserve!

Contact us with any concerns

These are the 2015 contribution limits

IRA’s  & SEP’s are easy to set up and maintain. If your business has employees and/or you want to match contributions (tax deductible employer contributions), Simple-IRA’s &  PSP’s are less expensive than SEP’s &  401K’s.  DBP’s offer the highest contribution limits and contributions are required for all employees.  These are also the most expensive to set up and maintain (tax deductible, of course).

Type of Plan	Last date for contribution	Maximum Contribution
Traditional  &  Roth IRA	Due date of individual tax return (Not including extensions)	$5,500 + $1,000 if over 50
Simple (Savings Incentive Match Plan for Employees)-IRA	Due date of individual tax return (plus extensions)	$12,500 + $12,500 (employer match)+ $3,000 and employer match  of same if over 50. Employer must match employee entire contribution (up to  3% of employee earned income) or  flat 2% of employee earned income non-elective (did  not contribute to the plan)
SEP (Simplified Employee Pension)-IRA	Due date of employer’s tax return (plus extensions)	Smaller of $53,000 or 25% of participants taxable compensation
Traditional, ROTH, & Simple 401K	Due date of employer’s tax return (plus extensions)	Smaller of $18,000 or 100% of participants taxable income  + $6,000 if over 50. Simple 401K is $12000 + $2,500 if over 50.
PSP (Profit Sharing Plan)&  KEOGH	Due date of employer’s tax return (plus extensions)	Smaller of $53,000 or 25% of participants taxable compensation
DBP (Defined Benefit Plan)	Due date of employer’s tax return (plus extensions)	Up to $210,000 or the amount needed to provide an annual retirement benefit no larger than 100% of the participants average taxable compensation for his/her highest three consecutive years

For those business owners who have non-employed spouses (to save on payroll taxes) you can contribute $5,500 to a separate Spousal IRA + $1,000 more if the spouse is over 50. The spouse must have a separate IRA, the contributing spouse must have earned income (from wages) equal to or greater to the contributed amount, and the amount is reduced accordingly if the spouse participates in any other Qualified retirement plan (QRP).

Most brokerages can set these up.

You'll thank me for reading this part: Every situation is different. So, spend some time on your financial goals & objectives before you set-up or rollover any of these into your small business.

Some useful IRS publications are:

• IRS Publication 560, Retirement Plans for small businesses
• IRS Publication 590A, Individual Retirement Arrangements

Get &   keep the lifestyle you deserve!

Contact us with any concerns