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Author: W401K 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 76082  
Subject: Re: Small Business Owner -- Retirement plans Date: 10/7/2000 12:26 AM
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The SEPs and Simple IRAs will be the lowes cost option in terms of administrative fees and reporting requirements. You are basically opening up the equivalent of IRA accounts. Under a SEP, the employer contributes money to the employees. The level of contribution can be as high as 15% of pay. The employer can write off the contribution it makes to the employees.
A SIMPLE IRA allows the employees to defer up to $6,000 of their salry on a pre tax basis. The employer must make a contribution using 1 of the 2 allowable formulas. They are, The employer can make a 2% of contribution to all eligible employees. This must be made whether they contribute on their own or not. The next method is a dollar for dollar match up to 3% of pay. The match can be lowered to as little as 1% in any 2 years out of 5. Also, if the employee does not contribute, the employer need not make any contribution. All employer contributions are 100% vested immediately.
Keough or Paired Plans require reporting and administrative services as do 401ks. Depending on the provider, number of employees and plan assets, these fees can vary greatly. You are basically looking at $1,000 to $2000 to run the plan. Be careful of offers that sound too good. They often have asset based fees or charge separatley for every little service.
Hope this helps.
If not, please follow up.

Bill
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