Retirement planning
Savings Incentive Match Plan for Employees
(SIMPLE IRA)
SIMPLE IRA is nice benefit to offer your employees. The plan allows employee
contributions and mandates an employer match. For 2007, annual contributions are
generally limited to $10,500 ($13,000 if you are 50 or older as of 12/31/07)
plus an employer matching contribution (up to 3% of your salary).
If you have a business with less than 10 people, then a SIMPLE IRA is a great way to get started.
SIMPLE 401(k)
This retirement option is like a traditional 401(k) in that the plan must meet the same requirements that apply to other 401(k) plans. Certain discrimination and participation requirements testing may be waived if employee contributions and employer contribution satisfy IRS regulations.
Profit sharing plans
Profit-sharing plans are a type of defined contribution plan. The employer is not required to contribute every year or any particular percentage of profits or other particular amount, but contributions must be substantial and recurring.
Cash balance plans
A cash balance plan is a defined benefit pension plan that provides benefits for each employee participant by reference to the amount of the participant’s hypothetical account balance.
401(k) plans
Each participating employee has the option of taking an amount of compensation in cash or having it paid to the plan. The plan must generally be part of a profit-sharing plan and satisfy certain IRS rules and regulations.