Question or Topic 

You may contact Bob Parrish by email, USA Mail, Fax, telephone or request a meeting

The Question: What is a very brief summary of employer sponsored plans?

Objectives

Related Articles

The Answer

Employer Sponsored Plans

Click on a plan for more information, including: summaries, guides, FAQs, forms, and applications SEP IRA SIMPLE IRA Age Weighted & New Comp. Super Comp. 401(k) & Safe Harbor 401(k) AIM Solo 401(k)SM Profit Sharing Money Purchase 401(k) 403(b) KEY FEATURES Cannot maintain any other plans                 Minimal paperwork & reporting             Full-service recordkeeping recommended       Loans permitted     Mandatory employer contributions             Contributions can vary with cash flow           Pre-tax salary deferral contributions         WHO CAN ESTABLISH The self-employed1, partnerships, S-corporations, C-corporations and nonprofit groups Public school or 501(c)(3) Governmental agencies         ANNUAL EMPLOYER CONTRIBUTIONS In 2001, up to 15% of wages or $25,500, whichever is less. In 2002, up to 15% of wages or $30,000, whichever is less.1                 Total plan contribution cannot exceed 15% of total eligible pay in 2001, 25% in 2002. Each participant's contribution cannot exceed lesser of 25% of pay or $35,000 in 2001, 100% of pay or $40,000 in 2002.2     3 Required match or profit sharing contribution               EMPLOYEE PRE-TAX CONTRIBUTIONS 2001   $6,500   $10,500       $10,500 $10,5004 2002 (under age 50)   $7,000   $11,000 $11,000     $11,000 $11,0004 2002 (age 50 & older)   $7,500   $12,000 $12,000     $12,000 $12,0004

¹If self-employed, compensation is earned income.
²Annual compensation limit: $170,000 in 2001 and $200,000 in 2002. Calculations of maximum total plan contributions and participant limits are complex and require knowledge of IRS regulations. Consult your tax advisor.
³Total deductible plan contributions for a Money Purchase Plan are 25% in 2001.
⁴Additional limits applied in 2001. Additional catch-up contributions may be available in 2002.

Solutions

Solutions are dependent upon facts & circumstances, law and the objectives.  These elements vary from one time to another, from one circumstance to another and from person or entity to another.

Kit to Prepare for Your Adviser

 Engagement Status Letter ~ WARNING!

WARNINGS ABOUT THIS SITE'S CONTENT~ Terms & Conditions

This entire site is for educational or informational purposes only.   You are not to use the forms, concepts, strategies, or knowledge without assistance from a professional.   The author, the corporation, the ISP, Bob Parrish CPA, Bob Parrish CPA, P.C. or other parties related to those or this site do not guarantee or warrantee in any manner the suitability, usefulness, accuracy, timeliness, or results of any portions of this site, nor the links contained in this site which link to other areas.   At times, information is taken from other sources and is believe to be accurate, but no verification or confirmation is performed.  Furthermore, if any federal or state law invalidates a portion of this disclaimer, the other portions still apply.   In addition, any allegations or actions are restricted to arbitration only and must be arbitrated by the Better Business Bureau in Sarasota Florida.  Reading of these pages constitutes complete acceptance and agreement with all disclaimer provisions on all pages of this site.

Material provided herein is based upon the most recently available information and is subject to change. It is not intended to be complete and should not be used to make any type of decisions. All should consult a qualified tax adviser and other professional(s) for more complete information.  

You have not engaged Bob Parrish CPA PC, Bob Parrish CPA, pro1040, Consulting on line, any related parties, or the ISP to perform any services for you or offer you advice.  This entire site is for educational or informational purposes only.   The materials are not opinions, advise, legal advice on any matter and have not been tailored to specific jurisdictions, individuals, other entities, or circumstances.  You are not to use the forms, concepts, strategies, or knowledge without assistance from a professional.   You must update and validate this information yourself with your own research, experience and the advice of a competent professional adviser in your jurisdiction.  The author, the corporation, the ISP, Bob Parrish CPA, Bob Parrish CPA, P.C. or other parties related to those or this site do not guarantee or warrantee in any manner the suitability, usefulness, accuracy, timeliness, or results of any portions of this site, nor the links contained in this site which link to other areas.   At times, information is taken from other sources and is believed to be accurate, but no verification or confirmation is performed.  Furthermore, if any federal or state law invalidates a portion of this disclaimer, the other portions still apply.   In addition, any allegations or actions are restricted to arbitration only and must be arbitrated by the Better Business Bureau in Sarasota Florida.  The cost of arbitration to the complainant is restricted to the cost through a court having jurisdiction in the matter including if allowed by law the cost of legal fees.  Reading of these pages constitutes complete acceptance and agreement with all disclaimer provisions on all pages of this site. ....... Monday, March 04, 2002 07:24 PM   

Navigation

    Privacy Statement