UnThreaded | Threaded | Whole Thread (14) | Ignore Thread Prev | Next
Author: buzman 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 76084  
Subject: Re: Follow-up to Other Choices Date: 5/13/2003 9:48 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
SEPs require no outside administration. In fact there is nothing that is filed with the IRS. Your employer simply fills out Form 5305 for your records and the companies. There are several low cost providers, TDWATERHOUSE, AMERITRADE, ETC.

Money purchase plans do require outside administration and are subject to ERISA rules (govern retirement plans). I'm not an expert but it would not surprise me if it is against ERISA for an employee to bear the administrative costs.

Most importantly, money purchase & SEP plans are funded with employer contributions, a fixed percentage of each eligible employee's salary. An employee can not choose to not participate.
--> SEP the percentage can fluctuate.
--> MP percentage is fixed.

There are not different "types of SEP" anymore. SARSEPs can not longer be started, only existing ones can continue to be funded.

FWIW, SIMPLE-IRAs require little in the way of administrative costs, also. One can defer 8k in salary in 2003 in addition to funding a Roth.

buzman




Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (14) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Apple

Wal-Mart Nixes Apple Pay
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement