| Our Contact Info: |
13951 N. Scottsdale Rd. Suite 222
Scottsdale, Arizona 85254
Phone: (480) 563-9808
Fax: (480) 563-3724 |
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Defined Benefit Pension Plans |
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| Percentage Limits |
Annual Dollar Limits |
Pros |
Cons |
| Depends on Age, Length of Service,
and Wages |
up to $400,000 |
Largest Contributions Allowable,
Most Investment Choices |
Can be Inflexible, Requires Certification
of Actuary, Requires Plan Document and Annual Filings
with DOL |
| Age |
Wages |
Years of Service |
Max Contribution\Yr. |
| 65 |
$245,000 + |
5 + |
$280,000 |
| 55 |
$245,000 + |
5 + |
$200,200 |
| 45 |
$245,000 + |
5 + |
$110,200 |
| 35 |
$245,000 + |
5 + |
$60,000 |
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Comment: These Plans work
well for someone with historically high wages, and who
wants amass the most, in the shortest time. |
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401(k) Plan |
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| Percentage Limits |
Annual Dollar Limits |
Pros |
Cons |
| $15,000 ($20,000 if 50+) in Deferrals,
plus 25% of Eligible Wages |
$49,000 (or $54,500) |
Flexible, Larger Contributions for
Lower Wage Earners, Most Investment Choices |
Requires Plan Document and Annual
Filings with DOL, Payroll Taxes on Deferrals |
| Age |
Wages |
Years of Service |
Max Contribution\Yr. |
50+
|
$245,000
|
N / A |
$54,500 |
| 50+ |
$100,000 |
N / A |
$47,000 |
| 50+ |
$50,000 |
N / A |
$34,500 |
| up to 50 |
$245,000 |
N / A |
$49,000 |
| up to 50 |
$100,000 |
N / A |
$41,500 |
| up to 50 |
$50,000 |
N / A |
$29,000 |
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Comment: These Plans work
well for someone with historically low wages, and who
wants to amass the most, in the shortest time, plus total
funding flexibility each year. |
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SEP IRA |
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| Percentage Limits |
Annual Dollar Limits |
Pros |
Cons |
| 25% of Eligible Wages |
$49,000 |
Inexpensive, Flexible |
Narrow Investment Choices, No Vesting
Schedule |
| Age |
Wages |
Years of Service |
Max Contribution\Yr. |
N / A
|
$245,000
|
N / A |
$49,000 |
| N / A |
$100,000 |
N / A |
$25,000 |
| N / A |
$50,000 |
N / A |
$12,500 |
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Comment: These Plans work
well for someone who wants total funding flexibility each
year. |
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SIMPLE IRA |
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| Percentage Limits |
Annual Dollar Limits |
Pros |
Cons |
| $9,000 ($10,500 if 50+) in Deferrals, plus
3% of Eligible Wages |
$18,850 (or $21,350) |
Inexpensive, Flexible |
Narrow Investment Choices, No Vesting
Schedule, Payroll Taxes on Deferrals |
| Age |
Wages |
Years of Service |
Max Contribution\Yr. |
50 +
|
$50,000
|
N / A |
$15,500 |
| 50 + |
$25,000 |
N / A |
$14,750 |
| up to 50 |
$50,000 |
N / A |
$13,000 |
| up to 50 |
$25,000 |
N / A |
$12,250 |
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Comment: These Plans work
well for someone with low wages, who wants total funding
flexibility each year. |
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