Forward 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 PlansUnder current law, there are two types of Tax Qualified Pension 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, Solo 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 |
2022 |
2023 |
| IRA Request | |||
| Allowance for working and non-working spouses | $6,000 |
$6,500 |
|
Age 50 or older catch-up |
$7,000 |
$7,500 |
|
| Roth IRA Request | |||
| Allowance for working and non-working spouses | $6,000 | $6,500 | |
| With age 50 or older catch-up total | $7,000 | $7,500 | |
| 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: | |||
| SEP Request | |||
Percentage of Compensation - or - |
25% |
25% |
|
Maximum Dollar Allocation Limit |
$61,000 |
$56,000 |
|
| Note: Whichever is less | (solve for) | (solve for) | |
| SIMPLE Request | |||
| Allowance by Employee | $14,000 |
$15,500 |
|
With age 50 or older catch-up total |
$17,000 |
$19,000 |
|
| 401K Request | |||
| Allowance by Employee | $20,500 |
$22,500 |
|
With age 50 or older catch-up total |
$27,000 |
$30,000 |
|
| 401K Request | |||
| Allowance by Self-Employed EE | $61,000 |
$66,000 |
|
With age 50 or older catch-up total |
$67,500 |
$73,500 |
|
| 403B Request | |||
| Allowance by Employee | $20,500 |
$22,500 |
|
Age 50 or older catch-up |
$27,000 |
$30,000 |
|
15 or more years of service, catch-up allowance amount / 15k lifetime max. |
Indiv. Calc. |
Indiv. Calc. | |
| 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. |
Copyright © 1998
Fielder Financial Management, LTD.
All Rights Reserved.
Securities offered through Fortune Financial Services, Inc. member FINRA, SIPC. Fielder Financial Management, Ltd. not affiliated with Fortune Financial Services, Inc. Mark Fielder, Financial Professional, CA. Insurance Lic. # 0690576.
Tax qualified pension plans and
IRA's have limits and
"income-based phaseouts" with respect to deductibilty and eligibility, per IRS
rules. Be sure to check
with your tax advisor.
Some plans allow "catch-up" provisions based on age 50 or older. Again, be sure
to check with your tax advisor before participating or enrolling.