Retirement Plans Suggestions

[Unregistered]

Client Has S-corp. And Wants To Maximize Contributions To Some
Type Of Retirement Plans --any Suggestions??

Could Make It On 1040 Or 1120s??

Ira
401-k(solo) Maybe

Any Suggestions Please.

[John of PA]

401k

I assume they are on a payroll with taxes withheld. With a 401k, the company can make the maximum employer safe harbor contribution (25% I think), plus the employee can elect the maximum contribution (now around 15,000?). Then the employee can do an IRA on top of that (if within the limits). Also a pension plan can be set up (heavy admistration costs); if person is say over age 50, a defined benefit plan will yield very large contributions. If the figures are not real large here, the solo 401k is great. IF you want it even simpler, a SIMPLE plan has just a little less contribution limits than a 401k, but works almost just like the 401k.

[Unregistered]

solo-401k

what is it and what are the requirements?

[Bees Knees]

what is it and what are the requirements?

IRS Pub 4222 http://www.irs.gov/pub/irs-pdf/p4222.pdf says the following:


"A safe harbor 401(k) plan is similar to a
traditional 401(k) plan, but, among other
things, must provide for employer
contributions that are fully vested when
made. However, the safe harbor 401(k) is
not subject to many of the complex tax rules
that are associated with a traditional 401(k)
plan, including annual nondiscrimination
testing.
Both the traditional and safe harbor plans
are for employers of any size and can be
combined with other retirement plans."

You would have to check with a company that administers 401(k) plans to find out the details. 401(k) plans are not easy and are not designed for the do it yourselfers. If you don't want to pay for an administrator, then do a SEP or a SIMPLE IRA.