Benefit Plans Plus | Individual 401k

What is an Individual 401k Plan?
The SBO 401k is a retirement plan designed exclusively for Small Business Owners with no employees other than their spouses.

What is the goal of an Individual 401k Plan?
Its primary goal is to reach the maximum salary deferral and employer contribution limits under current law for individuals: $45,000 for 2007.

SBO 401k Plan™ Features for 2007

Eligible Employers	Businesses that employ owners, their spouses, and have no other employees who will be eligible to participate (includes corporations, partnerships, sole proprietors and limited liability companies).
Plan Establishment Deadline	Company tax year end.
Eligibility	Age 21, no service requirement, immediate entry
Investment Options	Unlimited. You choose either Self-Directed* or Professional Management within a single custody account at the financial institution of your choice.
Valuable Features	Open investment architecture Loan: 50% of vested balance not to exceed $50,000 No discrimination testing Consolidate assets from IRA’S, other 401k’s, etc.
Salary Deferral Contributions	Up to $15,500 (not to exceed 100% of compensation) **.
Catch-Up Contributions	Participants age 50 or older may contribute an additional $5,000 in salary deferrals beyond the $15,500, which does not count towards the overall contribution limit of $45,000.
Employer Contributions	Up to 25% of compensation (earned income for self-employed) ** or maximum $45,000 (total of salary deferral and employer contributions).
Rollovers	Rollovers are allowed from traditional IRA’s, SEP, SIMPLE***, profit sharing, defined benefit, 401(k), 403(b) and governmental 457 plans.
Loans	Available (subject to IRS guidelines) to all participants, including unincorporated business owners.
Withdrawals	Limited to distributable events such as retirement, death or disability.
Set-up Charge:	Plan Document and Adoption Agreement $375 (deductible). Postage & Handling at Cost
Annual Maintenance Charge:	Plan Maintenance: $250 annually (deductible) Maintain qualified status of plan Annual Accrued Participant Report
Additional Services:	Employer Contribution Calculation: $125 annually IRS 5500-EZ prepartion: $125 annually Loan fee: $150 per loan set-up; $50 annual maintenance Distributions: $95 Trust reconciliation for multiple accounts: $115 per hour (1 hr. min.) $50 charge per participant starting with 3^rd life

* Must comply with Section 4975 of IRC (Prohibited Transaction Rules)
**$225,000 compensation limit for 2007.
***SIMPLE IRA rollover eligible after two-year holding period is met.

If you would like to receive more information, contact Julie Martin at 314.983.1298.

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