Foreward

Although the social security system now provides a great majority of retirement benefits for Americans, it was never intended as the sole source. So overburdened, some predict social security could bankrupt itself.

This is why Congress encourages us to save for our own retirement needs.

One such opportunity lies in the area of Tax Qualified Pension Plans.

Defined Contribution Plans & Defined Benefit Plans

Under current law, there are two types of Tax Qualified Pension plans:

  • Defined Contribution Plans, and

  • Defined Benefit Plans.

In this particular forum, we'll focus on Defined Contribution Plans.

Defined Contribution Plans are based on annual contributions made by an individual and sometimes, to a certain extent by the employer.

Under all plans, the participant will be responsible for all investment risk.

Defined Contribution Plans are Established by:

A. The Individual (IRA, Roth IRA) or

B. The company (SEP, SIMPLE, 401K, 403b) that employs you.

You can review a brief description of each or order more information by clicking on the appropriate links below.

 

Plans set up the Individual Investor:

Category & Descriptions

Request Information

2016
Limits

2017
Limits

Traditional IRA's

IRA Request

Allowance for working and non-working spouses

$5,500

$5,500

Age 50 or older catch-up

$6,500

$6,500

Roth IRA's

Roth IRA Request
Allowance for working and non-working spouses $5,500 $5,500
Age 50 or older catch-up $6,500 $6,500
Rollovers Rollover Request

100% Discetionary

No Limit No Limit
** New IRS Rules Apply      
** Get details 1-800-480-7526      
Plans set up by the Employer:

Simplified Employee Pension Plan

SEP Request

Percentage of Compensation - or -

25%

25%

Maximum Dollar Allocation Limit

$53,000

$53,000

Note: Whichever is less (solve for) (solve for)

SIMPLE IRA Plan

SIMPLE Request

Allowance by Employee

$12,500

$12,500

Allowance maximum match by Employer $12,500 $12,500

Age 50 or older catch-up

$3,000

$3,000

Traditional 401K Plan

401K Request

Allowance by Employee

$18,000

$18,000

Age 50 or older catch-up

$6,000

$6,000

403B Tax Sheltered Annuity Plan

403B Request

Allowance by Employee

$18,000

$18,000

Age 50 or older catch-up

$6,000

$6,000

15 or more years of service catch-up

$3,000

$3,000

Options after separation from Employer:
Rollover Option Rollover Request

Self-Directed IRA

No Limit No Limit
** New IRS Rules Apply      
** Get details 1-800-480-7526      

 

Rollovers

If you have an existing IRA or company-sponsored pension plan and would like to explore Rollover options, please click HERE.

Attention Employers

If you have an existing company-sponsored pension plan and would like a free analysis or are considering an upgrade, please click HERE. 

 

 

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Copyright 1998 Fielder Financial Management, LTD.
All Rights Reserved.

Securities and investment advisory services offered through Girard Securities, Inc. member FINRA, SIPC.
Fielder Financial Management, Ltd. not affiliated with Girard Securities, Inc.  Mark Fielder, OSJ, Registered Principal. CA. Insurance Lic. # 0690576.

Tax qualified pension plan have limits and "phaseouts" with respect to deductibilty, per the IRS.  Be sure to check with your tax advisor.
Some plans allow "catch-up" provisions based on age.  Again, be sure to check with your tax advisor.