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Author: sjfans Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121110  
Subject: Best retirement plan for small C corp.? Date: 9/6/2000 3:05 PM
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I posted this on the Retirement Investing board without much response - thought I'd try here. Any advice or pointing in the right direction is greatly appreciated . . .

I am vice president of a 2-person consulting firm. My father is president - he began as a sole proprietor 4 years ago, I began working for him 2 years ago, and we became a C-corp on 07/01/99.

As business has proven to be good and steady we are slowly adding benefits to our employment packages. We began with base salaries and basic health insurance. Next, the company leased a truck for him to drive and, later, bought (financed) a vehicle for me to drive. (That way the company gets the tax write-off and we get the benefit of a company vehicle to use for business as well as personal use.)

The next step, I think, will be a retirement plan. The question is, what kind? I have a great book "Tax Savvy for Small Business" and have read about various plans but honestly I am a little confused. I know there are Keoghs, SIMPLE IRA's, SEP's, 401k's, etc. but I just don't understand which of these is available and/or feasible and/or advisable for a small C-corp. Also, my book is a little out of date and I know some of the contribution limits, etc. have changed.

So what should I push for? A little more info that might be pertinent: my base salary is about $30,000 - Dad's is about $62,000; I am 24 - he is 50; I am just beginning to plan for retirement (I am establishing Roth IRA's for myself and my husband beginning this year, we have a couple of DRIP accounts set up, that's about it) - Dad's just several years from retirement and already has personal IRA's, retirement benefits from previous jobs, etc.

So I guess what I want to know is what type of plan:
- will allow me to maximize my contributions
- will provide for the best growth
- will benefit my dad also at his later stage of retirement planning
- will be easy and cost effective to administrate for a small company

Any thought and suggestions are appreciated . . .

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