
	Retirement Plans

Compare Retirement Plans

For additional information you can refer to IRS Publication 560, Retirement Plans for Small Business, available at www.irs.gov.


Choose this Retirement Solution	If you...	And enjoy these potential advantages	Opening and funding deadlines	Annual contributions



SEP IRA Plan	Want flexible contributions each year Want ease of administration Are self employed or have few employees	You can vary or skip contributions in any given year No additional tax filing is required You can reward employees based on a percentage of their compensation	Plan must be established and funded by your tax filing deadline, including any extensions	You can deduct 25% of eligible compensation¹ or $45,000, whichever is less, for 2007 You can deduct 25% of eligible compensation¹ or $46,000, whichever is less, for 2008 All contributions come from business income



SIMPLE IRA Plan	Have 100 or fewer employees Have employees who want to make contributions (i.e., salary deferrals) to help fund their own retirement Want ease of administration	Employees can choose whether to participate Employees who choose to contribute enjoy tax-deferred growth potential and reduced current income taxes No additional tax filing is required	Plan must be established by October 1 of first year and operated on a calendar year basis thereafter Employer contributions must be funded by your tax filing deadline, including any extensions Employee contributions must be made no later than 30 days after the end of the month in which they were withheld from the employee's pay	Maximum employee contribution is 100% of salary or $10,500 whichever is less for 2007 & 2008 Additional catch up contribution of $2,500 is allowed for employees age 50 or older for 2007 & 2008 You can either make a dollar-for-dollar match up to 3% of compensation only for employees who defer, or contribute 2% of eligible compensation¹ for all eligible employees



Profit Sharing Plan	Want flexible contributions each year Want flexibility in choosing plan design features	You can vary or skip contributions each year You can establish vesting requirements to reward long-term employees	Plan must be established by your fiscal year end (usually December 31) and funded by your tax filing deadline, including any extensions	You can contribute up to 100% of eligible compensation¹ You can deduct 25% of eligible compensation¹ or $45,000, whichever is less, for 2007 You can deduct 25% of eligible compensation¹ or $46,000, whichever is less, for 2008 All contributions come from business income



401(k) Plan	If you generally have more than 10 employees Have employees who want to make contributions to help fund their own retirement Want flexibility in choosing plan design features	Eligible employees can choose whether to participate Participating employees enjoy tax-deferred growth potential and reduced current income taxes You can establish eligibility and vesting requirements to reward long-term employees	Plan must be established by your fiscal year end (usually December 31) Employer matching contributions must be funded by your tax filing deadline, including any extensions Employee contributions must be made as soon as administratively feasible after the end of the month in which they were withheld from the employee's pay	Maximum employee contribution is 100% of salary or $15,500, whichever is less, for 2007 & 2008 Additional catch up contribution of $5,000 is allowed for employees age 50 and older for 2007 & 2008 Employer matching contributions are optional, and may be discretionary from year to year Combined employee and employer total contributions cannot exceed $45,000 ($50,000 including catch up) for 2007 and $46,000 ($51,000 including catch up for 2008



Individual (k) Plan	Are a sole proprietor or business owner with no employee other than your spouse Want to maximize contributions Want tax-exempt loan capabilities	More cost-effective administration than regular 401(k) plans Potential for higher overall contribution amounts than SEP or SIMPLE Availability of tax-exempt loans	Establishment and funding deadlines are the same as a regular 401(k) plan Only the business owner and spouse may participate	Annual employer and employee contribution limits are the same as a regular 401(k) plan

¹Maximum compensation on which contributions can be based is $225,000 for 2007 and $230,000 for 2008, indexed for inflation thereafter. Effective contribution maximum for sole proprietors is 20% of compensation (defined as earned income).