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Subject:  Re: 401(k) and IRAs Date:  6/17/2003  11:15 PM
Author:  dsemmler Number:  36566 of 78168

Are there any retirement plans available to me through my S-Corp., e.g. SEP IRA or Simple IRA, that provide deductible contributions beyond my max 401(k)? If so, what are the limits? I appreciate any help with this.

I am in the process of signing up for a SIMPLE-IRA with my employer and the limits for that can vary depending on the employer contribution. The employee can contribute a maximim of $8000, or $9000 if over the age of 50.

With a SIMPLE-IRA, there are a few options as far as the contributions.
The employer (aka you in this case) can elect to make a matching contribution. In this case, the employer contribution would be match the employee contribution dollar for dollar up to 3% of your salary. The matching percentage may be lower than 3% but can only do so for 2 years out of a 5 year period. Matching the full 3% would give you the most amount, with a maximum of $8000 in matching contributions.

Or, you can offer nonmatching contributions, where each eligible employee will receive a contribution totaling 2% of compensation up to $4,000 for 2003. In this case, the employee does not have to be participating in the plan to receive the employer contribu