SEP (Simplified Employee Pension) and SIMPLE (Savings Investment Match Plan for Employees) IRA’s are a great way for small businesses to offer the benefits of retirement savings options for themselves and their employees without the costs associated with a large 401(k) plan. Contributions are made by payroll deduction by the participants and by the employer through their matching program. The participants are 100% vested immediately.

A SEP IRA is a simple version of a retirement plan for sole proprietors, self-employed business owners. The plan can be established and funded by the tax filing deadline (including extensions) for it to be applicable for the prior year.

A SIMPLE IRA is a great plan for self-employed individuals and small businesses with 100 or fewer employees to offer tax-advantage retirement plans. This plan offers tax advantages for both the employers and the participants. The plan must be set up and employees notified by October 1st to be applicable for the current tax year.

In both plans, the contributions are tax-deductible and grow tax-deferred until withdrawn. The SEP contributions may vary each year between 0% and 25% of compensations with a limit for 2015 are $53,000. The SIMPLE contributions for 2015 are limited to $12,500 (under 50 years old) and $15,500 (50 and over).

Both plans are also subject to required minimum distributions starting at age 70 ½ and if withdraws are made prior to 59 ½ subject to early withdrawal penalties from both the Federal and State Tax levels.

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Due to renewed State orders for shelter-in-place we will be modifying our office operations. We will be suspending services at our physical office for the public. However, we are available to you via web meeting (zoom), email and telephone (Phone lines have been forwarded to our personal cell phones) during regular business hours. We will be able to fully service all your investment needs with no interruption.

You may drop contribution checks at our office through the mail slot or they may be mailed directly to TD Ameritrade (address listed below). Please be sure to notate your account number on the check.

TD Ameritrade
PO BOX 650567
Dallas, TX 75265-0567

Rest assured that we will continue to monitor your investments and market conditions on an ongoing basis with no interruption. Should you have any questions or concerns please feel free to contact us.

We will navigate this crisis as best we can, coming together and making shared sacrifices. We hope that we can help to slow down the effect of this virus together and solve this swiftly. We also wish everyone well and would like to extend our gratitude for your patience during these trying times. Continue to watch for updates from us.