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Author: pension7ed Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76238  
Subject: Re: pension options Date: 4/15/2000 2:32 PM
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Hi Maria
<<I have a small business that is incorporated and I am the sole employee of it. What are my pension options besides IRA's? Any suggestions are welcomed.>>

Besides SEP, Profit Sharing Keogh's that are limited to 15% of Pension Pay, and besides Money Purchase Keoghs that are limited to 25% of Pension Pay, there are also Defined Benefit plans that, for workers over age 45, can produce much higher percentages. You'll need a qualified pension actuary to work with you, but you will like the deductions:

With a Net Schedule C of $20,000 at age 55, (making the proper Self Employment tax adjustments to net income):

Profit Sharing $2,424
Money Purchase 3,717
Defined Benefit 8,849

by - Your friendly pension actuary.
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