Leonhardi Investment Management, Inc. offers a Single Participant
Retirement Plan called a "Solo 401k". The Solo 401-K
allows business owners all of the benefits and none of the hassle
of the traditional 401(k) Plan. Solo 401-k Plans are not subject
to compliance testing and require minimal administration, while
allowing small business owners to defer the maximum amount of
salary towards their retirement.
-
Significantly Higher Individual Contributions
- Most eligible business owners will be able to
contribute up to 25 percent of earnings. In addition to making
the full 25 percent contribution, business owners may also
defer up to the maximum $15,500* in salary, making a maximum
combined contribution of $46,000 for 2008**.
-
Rollover Capabilities -
Both SEP and IRA funds can easily be rolled over into a Solo
401-K Plan. The advantage is not only having all funds in
one easy to manage location, but also tax-free access to your
deferrals through loans.
-
Flexibility - With a Solo
401-K Plan there is no minimum deferral amount unlike a Simple
IRA, and contribution amounts can be changed yearly. Also,
business owners can now enjoy the freedom of loans through
their Solo 401-K Plans.
-
Suitable for solo business
owners - The Solo 401-K is suitable for sole proprietors,
C-Corps, owner-only partnerships, husband & wife only
plans and possibly employers with a few part-time employees.
Independent contractors, realtors, appraisers, doctors, lawyers,
consultants, technicians or any other business where the owner
is the sole employee are eligible.
*Indexed for inflation each year
**Employees age 50+ are eligible for catch-up contributions of
$5,000* for the Solo 401-K or the 401-K; $2,500 catch-up for SIMPLE
Plans.
|
|
|
SELF EMPLOYMENT INCOME |
|
PLAN TYPE
|
$50,000 |
$80,000 |
$150,000 |
$230,000 |
|
Profit Sharing |
$10,000 |
$16,000 |
$30,000 |
$45,000 |
|
401-K/Solo 401k (elective
deferrals)
|
$15,500 |
$15,500 |
$15,500 |
$15,500 |
|
SEP-IRA
|
$10,000 |
$16,000 |
$30,000 |
$46,000 |
|
Simple IRA |
$10,500 |
$10,500 |
$10,500 |
$10,500 |
|
401-K & Profit Sharing
|
$25,500 |
$31,500 |
$45,500 |
$46,000 |
|
|
W-2 Wages
|
|
PLAN TYPE
|
$50,000 |
$80,000 |
$150,000 |
$230,000 |
|
Profit
Sharing |
$12,500 |
$20,000 |
$37,500 |
$46,000 |
|
401-K/Solo 401k (elective
deferrals)
|
$15,500 |
$15,500 |
$15,500 |
$15,500 |
|
SEP-IRA
|
$12,500 |
$20,000 |
$37,500 |
$46,000 |
|
Simple
IRA |
$10,500 |
$10,500 |
$10,500 |
$10,500 |
|
401-K & Profit Sharing
|
$28,000 |
$35,500 |
$45,500 |
$46,000 |
Note: My-k Plans are only available to
companies with One eligible employee (1,000 + hours/ year).
The
above tables show maximum contribution limits for 2008 for each
plan type. Call us to prepare a cost-analysis for your company
to determine which plan is right for you to receive additional
benefits and tax savings.
This information is offered as general guidance on the subject
covered and is not intended to be authoritative or to provide
legal, tax or investment advice.
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