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Posted by AsymF on March 5, 2008, 5:04 am
What would by the best type of investment plans for the officer of an
S-corp and why?
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Posted by AsymF on March 14, 2008, 5:25 am
> What would by the best type of investment plans for the officer of an
> S-corp and why?
>
Any ideas? I don't think SEP qualifies, but I had looked into it. Not
sure about a standard 401K either.
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Posted by on March 14, 2008, 10:25 am
> > What would by the best type of investment plans for the officer of an
> > S-corp and why?
> Any ideas? I don't think SEP qualifies, but I had looked into it. Not
> sure about a standard 401K either.
Is that officer taking W-2 income from the S-Corp? If so,
a SEP-IRA is perfectly acceptable. The Solo 401k (search
for that term) also works and may allow you to put more
money into the plan.
See, for example, at Fidelity:
<http://personal.fidelity.com/global/search/inquira/resultsindex.shtml?question=solo%20401k>
or <http://www.individual401k.com/> which has info about
the four main options available:
Individual 401k, SIMPLE, SEP-IRA and Defined Benefit
There are different circumstances under which any one
may be better than the others.
--
Plain Bread alone for e-mail, thanks. The rest gets trashed.
No HTML in E-Mail! -- http://www.expita.com/nomime.html
Are you posting responses that are easy for others to follow?
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Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
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Posted by AsymF on March 14, 2008, 7:15 pm
On Mar 14, 10:25 am, BreadWithS...@fractious.net wrote:
> > > What would by the best type of investment plans for the officer of an
> > > S-corp and why?
> > Any ideas? I don't think SEP qualifies, but I had looked into it. Not
> > sure about a standard 401K either.
>
> Is that officer taking W-2 income from the S-Corp? If so,
> a SEP-IRA is perfectly acceptable. The Solo 401k (search
> for that term) also works and may allow you to put more
> money into the plan.
>
> See, for example, at Fidelity:
> <http://personal.fidelity.com/global/search/inquira/resultsindex.shtml...>
>
> or <http://www.individual401k.com/> which has info about
> the four main options available:
> Individual 401k, SIMPLE, SEP-IRA and Defined Benefit
> There are different circumstances under which any one
> may be better than the others.
>
> --
> Plain Bread alone for e-mail, thanks. The rest gets trashed.
> No HTML in E-Mail! -- http://www.expita.com/nomime.html
> Are you posting responses that are easy for others to follow?
> http://www.greenend.org.uk/rjk/2000/06/14/quoting
Yes, the officer receives W-2 income and is registered with the ESC as
an employee of the corporation.
======================================= MODERATOR'S COMMENT:
Please trim the post to which you are responding.
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Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
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Posted by on March 18, 2008, 10:45 am
> On Mar 14, 10:25 am, BreadWithS...@fractious.net wrote:
> > or <http://www.individual401k.com/> which has info about
> > the four main options available:
> > Individual 401k, SIMPLE, SEP-IRA and Defined Benefit
> > There are different circumstances under which any one
> > may be better than the others.
> Yes, the officer receives W-2 income and is registered with the ESC as
> an employee of the corporation.
Again, the details of the situation make a difference.
How many other employees there are, the profitability
of the corp, etc.
All the different options have different caps on how much
can be contributed (ie. SEP-IRA up to 25% of employee salary,
401k up to $15.5k plus employer contributions, SIMPLE
maxes at a lot less per year, and must cover everyone, and
defined benefit may actually allow higher-paid older
employees to put a *lot* in but very little for lower-paid
and younger employees). Also the rules on *who* makes the
contribution vary (401k is employee contributions with a
possible match or safe-harbor contribution from employer;
the rest all require larger (or all) to come from the
employer, not the employee).
Do a little reading on some of these basic, knowing
that these are the four main options available - and
then talk to your accountant. Unless it's something
really really simple (ie. it's just you, or you and
one other employee), it's likely too complex a decision
to be made based on a couple of posts to the newsgroup.
FWIW, the SEP-IRA is probably the easiest and cheapest
option to administer and it's very popular for sole
proprietorships. The Individual 401k is gaining in
popularity, since it may allow a greater amount of
money to be put away, especially in proportion to
earnings. SIMPLE is very helpful if you have a
handful of employees and want to make something
available to all of them with very low management
overhead. That's the shortest summary, I can manage.
[and, as usual, I invite further commentary from the
others here who may have more experience actually
setting these things up than I do, and especially
corrections to anything I've said]
--
Plain Bread alone for e-mail, thanks. The rest gets trashed.
No HTML in E-Mail! -- http://www.expita.com/nomime.html
Are you posting responses that are easy for others to follow?
http://www.greenend.org.uk/rjk/2000/06/14/quoting
--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.
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