Brian (User)
Senior Boarder
Posts: 64
|
|
SEP, Simple, or Keogh 1 Year, 1 Month ago
|
Karma: 1
|
|
What type of retirement plan should i setup for my law pratice? Any financial advisors out there?
|
|
|
|
|
|
|
 
|
Tomas (User)
Senior Boarder
Posts: 69
|
|
Re:SEP, Simple, or Keogh 1 Year, 1 Month ago
|
Karma: 3
|
|
I am not an FA but i established a SEP and manage my own investments. A SEP is simple to create in that it doesnt require any complex paperwork or annual IRS filings. All you need to do is create a one-page adoption agreement, make your contributions and give your returement fund the opportunity to accumulate. Contributions to the SEP can be adjusted annually and the contributions are tax deductible.
A SEP is the only retirement plan that you can establish retroactively for the previous business year if you complete the adoption agreement by the deadline for yoiur business's tax return (including extensions). Check with your FA for employee eligibility and exclusions.
The maximum amount you can contribute for an employee in one year is 25% of the employee's annual compensation or $45k (for year 2007).
One of the problems with a SEP is that there are no catchup contributions available.
Hope that helps.
|
|
|
|
|
|
|
|
steve (Moderator)
Moderator
Posts: 149
|
|
Re:SEP, Simple, or Keogh 1 Year, 1 Month ago
|
Karma: 3
|
|
One thing I want to add is that when you setup a SEP for yourself, you have to offer the SEP to your employees, otherwise the SEP will be considered "discriminatory" and the contributions to the SEP may not be deductable. In addition, if you make a matching contribution for an employee, that contribution will "vest" immediately. So, the hazard is that you make an employer contribution to the employee's retirement account and the employee leaves right after with the vested benefit. With a 401-K you can defer vesting of employer contributions over a structured interval. Talk to your financial advisor about the pros and cons of each type of plan.
If you are in Michigan then contact one of the following financial advisors for more details:
Brian Mosallam
Financial Consultant
AXA Advisors, LLC
313-712-5300
Troy Yaldoo, CFP
A.G. Edwards and Sons
2401 W. Big Beaver Road
Troy, MI 48084
248-649-9944<br><br>Post edited by: steve, at: 2007/12/15 11:52
|
|
|
|
|
|
|
|
|
Legal Forums 
Favoured: 0
