| |
|
|
|
| Newsletters |
| |
|
| RSS feed |
 |
"Join the RSS
feed to get a Free subscription to our newsletter"
Please follow below steps to view the updated latest RSS feed
a) Please signup at http://www.bloglines.com/register/
b) add the http://www.investsafe.com/rss/ to " my Feeds"
c) click on the added feed to view our latest rss newsletter |
| |
| Free Compliance Check Up for SEP plans |
The Simplified Employee Pension (SEP) plan is popular
retirement plan used by self employed sole proprietors. However, it is
important to note that to maintain their tax advantage status these
retirement plans must continue to meet certain qualifying conditions.The IRS provides a checklist of ten simple questions to help
the small business owner determine whether his SEP retirement plan is
compliant or not, and offers advice about how to fix any problems. You may
find that checklist at http://www.irs.gov/pub/irs-tege/sep_checklist.pdf
|
| |
| |
| New
Savings Proposal by President Bush |
President Bush has called for the creation of
new tax-advantaged savings vehicles that are likely to have a significant
impact on the way Americans save for retirement and other goals.
Lifetime Savings Accounts
A completely new type of savings vehicle,
the lifetime savings account (LSA) could be used to save for any purpose,
such as retirement, buying a home or auto, paying for college, or taking a
vacation.
This account would allow an individual to
contribute maybe up to $7,500 each year (contribution amount is still not
sure), with no age or income restrictions. Contributions to an LSA would be
made with after-tax dollars (there would be no tax deduction for
contributions), but earnings would accumulate tax free. Individuals would be
able to take tax-free distributions from an LSA at any age and for any
purpose, with no minimum holding period. Existing Archer medical savings
accounts, Coverdell education savings accounts, and qualified state tuition
plans could be converted into LSAs..
Retirement Savings Accounts or Improved
Roth IRAs
The retirement savings account (RSA) would
replace traditional and Roth IRAs. This account would allow an individual to
contribute maybe up to $7,500 each year (contribution amount still unknown),
with no age or income restrictions (except that contributions would not be
able to exceed compensation). Contributions would be made with after-tax
dollars (there would be no income tax deduction for contributions), but RSA
funds would grow tax free, and distributions after age 58 (or in the event
of death or disability) would also be tax free. There would be no lifetime
required minimum distributions.
Existing traditional IRA funds could be
converted to an RSA, with resulting tax consequences. Individuals converting
a traditional IRA to an RSA during the first year that the legislation is
made effective would be able to spread the resulting tax over four years.
Roth IRAs would automatically become RSAs, and, although traditional IRAs
would continue to exist, they would no longer be able to accept
contributions (though rollovers to traditional IRAs would still be allowed).
Employer Retirement Savings Accounts
The president's proposal would also
dramatically change the employer-sponsored retirement plan landscape.
Currently, there are several types of defined contribution plans that allow
employee deferrals. The proposal would consolidate 401(k) plans, thrift
plans, 403(b) plans, governmental 457 plans, SAR-SEPs, and SIMPLE IRAs into
employer retirement savings accounts (ERSAs). An ERSA could be established
by any employer. Current and future employee contribution limits for ERSAs
would be the same as those that now exist for 401(k) plans.
An ERSA would function much like a 401(k)
in that employee deferrals would be pretax (although plans could allow
after-tax contributions), employers could provide matching contributions,
and distributions would generally be taxable to employees. To encourage
employers to offer ERSAs, the proposal would simplify or repeal many of the
complex rules that now govern defined contribution plans. 401(k) plans would
automatically become ERSAs. Other impacted plans (SIMPLEs, SAR-SEPs, 403(b)
plans, and governmental 457 plans) would continue to exist, but would not be
able to accept any contributions. |
| |
| If you own a SEP-IRA,
Keogh, SAR-SEP, or SIMPLE IRA and you have no employees find out why it
may make sense for you to switch to a Self-Employed 401(k) plan. |
|
|
|
|
|
