The Motley Fool Discussion Boards

Previous Page

Education, Jobs & Professions / Self-Employed Fools

URL:  http://boards.fool.com/simple-ira-has-to-be-opened-by-10-1-so-it-is-too-21779709.aspx

Subject:  Re: S-Type Corp Retirement Plans Date:  12/19/2004  3:34 PM
Author:  buzman Number:  10895 of 14985

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.

Buz
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us