A retirement plan that calls for annual contributions by the employer to accounts of each participating employee, based upon a formula expressed as a percentage of earnings or profits. A retirement plan that is funded primarily by the pre-tax contributions of employees, although some plans allow for a matching employer contribution. Deductibility of contributions however, may be limited based upon active participation in employer sponsored retirement plans and the amount of adjust gross income. Good for employers with few employees and limited financial resources who do not want to take on the financial commitment inherent in a defined benefit pension plan. Insure that when your opportunity for success presents itself, you have planned well.
Prices are reasonable and competitive.
The Internal Revenue Service has announced it would NOT follow a decision by the Ninth Circuit Court that amounts received by a retired insurance agent as termination payments were not self-employment income because the payments did not derive from his prior business activity. The excise tax amount is 10 percent of that portion of the purchase price that exceeds the base amount. That is why tax planning should be an all year-round effort. Effective planning today may not only reduce your 1995 tax liability, it can help you lessen the confusion at tax time next year. The sooner you get started, the more flexibility you will have.