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|Subject: Re: S-Type Corp Retirement Plans||Date: 12/19/2004 3:34 PM|
|Author: buzman||Number: 10895 of 15005|
Simple IRA- Has to be opened by 10-1 so it is too late for this year. You can defer up to 11K in 2005. Company match is up to 3%.
SEP-Probably the best bet if you are the only employee-you to get IRS Pub 590- for an employee of a corporation you can contribute up to 25%
SOLOK- The S in solo stands for solo. Since 10% of the S corp's income will flow to the 10% shareholder you could have an issue there. I would recommend against it but I would consult with an ERISA pro.
Your understanding of the funding of solo K is incorrect. You can defer up to 14K(2005) in salary deferral. Then you company can make up to a 25% profit sharing match. The total amount(profit sharing/elective deferral) can not EXCEED the lesser of total compensation or 41K.
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