SEP IRA

Archive for November, 2007

Question: My 941’s filed timely however they did not reflect my deductions for a SIMPLE IRA. How do I adjust?

FICA & Med are correct. How do I adjust the other taxes?

Answer: I’m confused by your question. Contributions to SIMPLE IRA’s do not lower the taxes you report quarterly on a 941 form. Yes, they are pretax dollars, but you still have to pay tax on the gross amount of income paid out if you are the employer. There is no deduction for SIMPLE IRA Contributions or what you have matched as the employer.

Question: I want to open a SEP IRA, rollover my 401k, and do stock trading…all with one company. Who’s the best?

I use Fidelity for my 401K, Ameritrade for my stocks, Wells Fargo for my checking accounts, INGDirect for my savings account, Chase for my credit cards and HELOC, and WaMu for my mortgage. I’m looking to consolidate a bit, so I don’t have to deal with so many different log-ins and interfaces. I also need to open a SEP IRA before the tax deadline. If I want to at least consolidate my 401K, SEP IRA, and Stock Trading with one company, what company should I go with? Schwab? Ameritrade? Fidelity? WellsFargo? ETrade? A different company? My must-haves are:
1. No/Low Fees
2. Good Customer Service
3. Intuitive Online Interface
4. Fast and easy set up (e.g. account set up, rollover, initial deposit, etc.)

Thanks for your help!!!

Answer: Vanguard will give you the lowest fees.

Schwab will probably give you the best service.

Financial Services Fontana CA: Investments, Mutual Funds, 401k, IRA, Annuity, Life Insurance

When a SIMPLE IRA is right for you � Part Four

© Copyright 2006 by Frank Mitchell

* Each employee must complete a SIMPLE IRA Adoption Agreement, found in the SIMPLE IRA handbook.

* The deadline for Salary Deferral contributions is no later than 30 days after the month of deferral.

* The maximum allowed Contribution is up to $10,000 annually, or 100% of your income as stated in your tax return.

That ��s it! If you can download forms, hand them to the correct people, and make your choices based on these plan guidelines, then you can do everything you need to set up your SIMPLE IRA immediately.

In conclusion, if you are looking for a retirement plan for your small business, then I strongly encourage you to learn more about the SIMPLE IRA plan. Even if you need something that this plan doesn’t have, it is still a very good idea to learn about the SIMPLE IRA and use this as a benchmark to judge the worth of other plans by.

You can easily learn everything you need to know about it for free on our resource website. There are also many other great resources online like Yahoo Finance, the Motley Fool, and Forbes, to name a few.

If you own a small business of any type, you owe it to yourself and your future to take this opportunity to learn about this incredibly flexible retirement plan.

Frank Mitchell is a retired FA who spends his time helping non-profit organizations set up their retirement plans.