Individual
Retirement
Account (IRA)
 |
Individuals
with compensation |
|
Non-working
spouses who file a joint tax return |
|
Any
earnings accumulate tax deferred - taxes are paid only when earnings
and deductible contributions anre withdrawn |
|
Contributions
must be made in cash |
|
Anyone
under age 70 1/2 who has compensation |
|
A spouse under age 70 1/2 with no compensation, if filing jointly |
|
Deductibility
of annual IRA contributions is phased out for individuals with AGI
(Adjusted Gross Income) of $40,000-$50,000 (for 2003) |
|
Deductibility
of annual IRA contributions is phased out for married couples with
AGI of $60,000-$70,000 (for 2003) |
|
Maximum
contribution is the lesser of $3,000 or 100% of compensation per
tax year for 2003 |
|
Contributions
may be tax deductible; however, an individual may also make nondeductable
contributions |
|
For those individuals who are 50 or older at the end of the taxable year, an additional annual "catch-up" contribution of $500 may be made |
|
Contributions
may be fully or partially tax deductible depending on an individual's
active participation in an employer-sponsored Retirement Plan and
AGI (Adjusted Gross Income) |
|
Eligeble
rollover contribution from an employer-sponsored plan |
|
Penalty-free
distribution events: -Attainment of age 59% -Death -Disability -Series of certain substantially equal payments -Health insurance premiums for certain unemployed individuals -Qualified higher-education expenses -Qualified first-time home purchase ($10,000 lifetime limit) -Certain medical expenses in excess of 7.5% of AGI IRS levy under Section 6331 of the Internal Revenue Code |
|
Minimum
distributions must begin by April 1 following the year an individual
turns age 70 1/2 and must occur by December 31 each year thereafter |
|
Contributions
due by individual's tax-filing deadline excluding extensions - generally
April 15th |
|
Annual
IRS Form 5498 and 1099-R reporting |
|
IRS
Form 8606 required to be filed by individual for any nondeductible
contribution or recharacterization of contribution |
|
Annual
Minimum Required Distribution notice sent to investors age 70 1/2
and older |
|
Annual
retirement maintenance fee per account. This fee may be subject
to correspondent adjustments. Please contact your home office for
more information. |
|
$75
termination fee |
|
Individuals
with compensation not to exceed AGI limits |
|
Non-working
spouses who file a joint tax return |
|
Earnings
accumulate tax free |
|
Annual
contributions must be made in cash |
|
Roth
conversion contributions may be made in-kind |
|
Eligibility
of annual contributions is phased out for individuals with AGI of
$95,000-$110,000 |
|
Eligibility
of annual contributions is phased out for married couples filing
jointly with AGI of $150,000-$160,000 |
|
A
spouse with no compensation, if filing jointly |
|
Can
convert Traditional IRA, Rollover IRA, SEP-IRA of SIMPLE IRA (after
two-year period) assets to a Roth IRA if AGI (joint or individual)
is $100,000 or less |
|
Maximum
contribution is the lesser of $3,000 or 100% of compensation per
tax year for 2003 |
|
For
those individuals who are 50 or older at the end of the taxable
year, an additional annual "catch-up" contribution of
$500 may be made |
|
Contributions
are made with after-tax (or nondeductible) money |
|
Contributions
can be withdrawn anytime - tax free and penalty free |
|
Penalty-free
distribution events: -Attainment of age 59% -Death -Disability -Series of certain substantially equal payments -Health insurance premiums for certain unemployed individuals -Qualified higher-education expenses -Qualified first-time home purchase ($10,000) lifetime limit) -Certain medical expenses in excess of 7.5% of AGI IRS levy under Section 6331 of the Internal Revenue Code |
|
No
minimum distributions required in account owner's lifetime |
|
Contributions
due by individual's tax-filing deadline excluding extensions - generally
April 15th |
|
Annual
IRS Form 5498 and 1099-R reporting |
|
IRS
Form 8606 required to be filed if individual makes a Roth IRA Conversion
or Recharacterization of conversion or annual contribution |
|
Annual
retirement maintenance fee per account. This fee may be subject
to correspondent adjustments. Please contact your home office for
more information. |
|
$75
termination fee |
|
Individuals
with compensation |
|
Earnings
accumulate tax free |
|
Annual
contributions must be made in cash |
|
Roth
conversion contributions may be made in-kind |
|
Anyone
with eligible employer-sponsored retirement assets generally, all
pre- and after-tax contributions and earnings. (Minimum required
distributions, certain substantially equal periodic payments, and
hardship distributions cannot be rolled over.) |
|
Annual
contributions are permissible, but the commingling of money may
result is the loss of eligibility to roll over to another employer-sponsored
plan |
|
Penalty-free
distribution events: -Attainment of age 59% -Death -Disability -Series of certain substantially equal payments -Health insurance premiums for certain unemployed individuals -Qualified higher-education expenses -Qualified first-time home purchase ($10,000 lifetime limit) -Certain medical expenses in excess of 7.5% of AGI -IRS levy under Section 6331 of the Internal Revenue Code |
|
Minimum
distributions must begin by April 1 following the year an individual
turns age 70% and must occur by December 31 each year thereafter |
|
An
individual generally has 60 days from the date he or she receives
an eligible rollover distribution to contribute the assets to a
Rollover IRA |
|
An individual may request a trustee-to-trustee transfer to move assets between Rollover IRAs, which would not be subject to the 60 day rollover deadline |
|
Annual
IRS Form 5498 and 1099-R reporting |
|
Annual
Minimum Required Distribution notice sent to investors age 70 1/2
and older |
|
Annual
retirement maintenance fee per account. This fee may be subject
to correspondent adjustments. Please contact your home office for
more information. |
|
$75
termination fee |
Distribution
Account
(IRA-BDA)
|
Beneficiary
of IRA assets who wishes to extend the IRA beyond the owner's lifetime |
|
Eligible
distributions from employer-sponsored Retirement Plan can be directly
rolled over to Rollover IRA |
|
Direct
rollover avoids 20% withholding requirement on distributions from
employer-sponsored plans |
|
Any
earnings grow tax deferred until withdrawal |
|
To
be eligible for a BDA you will need to be the beneficiary of any
type of IRA |
|
A
sole spouse beneficiary has the option to transfer the inherited
assets directly to his/her own IRA or to establish an IRA-BDA or
Roth IRA-BDA as applicable |
|
The accounts are funded via internal transfer from a Premiere Select IRA (Traditional, Roth, Rollover, SIMPLE, and SEP) to a Premiere Select IRA-BDA |
|
The Premiere
Select IRA-DBA also accepts transfers from Beneficiary Distribution
accounts held at other custodians |
|
Ongoing contributions
cannot be made to a Beneficiary Distribution Account |
|
IRA-BDA
assets are subject to MRD requirements |
|
Distribution
requirements depend on certain factors: -Beneficiaries' relationship to the original depositor -The original depositor's age at time of death -MRD elections that the original depositor already made -The type of IRA involved |
|
To
be eligible to use a life expectancy distribution the beneficiary
must take the first distribution by December 31 of the year after
the death of the original owner. An IRA-BDA must be established
in order to take distributions |
|
Annual
IRS Form 1099-R reporting |
|
Annual
retirement maintenance fee pr acccount. This fee may be subject
to correspondent adjustments. Please contact your home office for
more information |
|
$75
termination fee |
Employee
Pension Plan
(SEP-IRA)
|
Self-employed
individuals, small-business owners, independent contractors who
want a plan that is relatively easy to set up and administer |
|
Available
to sole proprietors, partnerships, corporations, "S" corporations,
independent contractors, and nonprofit organizaitons |
|
Employer
maked annual contributions to employees' IRAs |
|
Contributions
are discretionary and employer tax deductible |
|
100%
immediate vesting |
|
Any
earnings grow tax deferred until withdrawn |
|
Fewer
administrative requirements than qualified plans |
|
IRS
model may be used by employers who do not currently maintain a qualified
plan and never covered employees under a defined benefit pension
plan |
|
Must
include employees who: -Are a minimum age of 21 -Have worked for the employer for any three of the immediate past five years and earned at least $450 a year (for 2003) as indexed thereafter |
|
Maximum
employer contribution - lesser of 25% of total compensation or $40,000
(for 2003) as indexed thereafter per participant (20% if self-employed) |
|
Uniform
contribution rate for employees and employer |
|
Penalty-free
distribution events: -Attainment of age 59 1/2 -Death -Disability -Series of certain substantially equal payments -Health insurance premiums for certain unemployed individuals -Qualified first-time home purchase $10,000 lifetime limit) Certain medical expenses in excess of 7.5% of AGI IRS levy under Section 6331 of the internal Revenue Code |
|
Minimum
distributions must begin by April 1 following the year an individual
turns age 70 1/2 and must occur by December 31 each year thereafter |
|
Plan
must be adopted by employer's tax-filing deadline, including extensions |
|
Contributions
due by employer's tax-filing deadline, including extensions |
|
IRS
Form 530-SEP to adopt plan (a copy must be provided to each eligible
employee) |
|
No
employer annual tax-filing requirements |
|
Annual
Minimum Required Distribution notice sent to investors age 70 1/2
and older |
|
Annual
retirement maintenance fee per account. This fee may be subject
to correspondent adjustments. Please contact your home office for
more information |
|
$75
termination fee |
|
employers
with 100 or fewer eligible employees who do not maintain another
Retirement Plan |
|
Suitable
for firms that wish to offer employee salary-deferral contributions
but are looking for an easier plan to administer than a 401(k) plan |
|
Available
to sole proprietors, partnerships, corporations, "S" corporations,
and nonprofit organizations |
|
Simplified
Retirement Plan that is easier and typically less expensive to administer
than a 401 (k) plan |
|
Allow
for both: -Voluntary employee salary-deferral contributions -Mandatory employer contributions that are generally tax deductible for the employer |
|
100%
immediate vesting |
|
Any
earnings on employee acount balances grow tax deferred until withdrawn |
|
employers
must not maintain another employer-sponsored Retirement Plan |
|
Must
include employees who: -Have earned at least $5,000 in compensation in any preceding two years; and -Are reasonably expected to earn at least $5,000 in compensation in year of participation |
|
Maximum
employee deferral contribution - lesser of 100% of compensation
or $8,000 (for 2003) as indexed |
|
For
those individuals who are 50 or older at the end of the taxable
year, an additional annual "catch-up" contribution of
$1,000 (for 2003) may be made |
|
Employer
elects to either match contribution of up to 3% of compensation
for each employee electing to defer a portion of compensation or
a mandatory nonelective contribution of 2% of compensation for all
eligible employees (mandatory) |
|
Maximum
employer contribution of $8,000 (for 2003) |
|
Penalty-free
distribution events -Attainment of age 59 1/2 -Death -Disability -Series of certain substantially equal payments -Health insurance premiums for certain unemployed individuals -Qualified higher-education expenses -Qualified first-time home purchase $10,000 lifetime limit) -Certain medical expenses in excess of 7.5% of AGI -IRS levy under Section 6331 of the internal Revenue Cod |
|
Minimum
distributions must begin by April 1 following the year an individual
turns age 70 1/2 and must occur by December 31 each year thereafter |
|
Generally,
the plan must be established and accepted by the Custodian on or
before October 1st for contributions to be made that year |
|
Employer
contributions due by employer's tax-filing deadline, including extensions |
|
Employer
adopts the SIMPLE Plan |
|
Employee
completes a Salary Reduction Agreement |
|
Custodian
provides Annual Summary Description information to employer |
|
Annually,
the employer must distribute the 60-Day Notice and Summary Description
to eligible employees |
|
Annual
IRS Forms 5498 and 1099-R reporting |
|
Annual Minimum Required Distribution notice sent to investors age 70 1/2 and older |
|
Annual retirement maintenance fee per account. This fee may be subject to correspondent adjustments. Please contact your home office for more information |
|
$75 termination fee |
|
Appropriate
for employers who want contribution flexibility |
|
Available
to sole proprietors, partnerships, corporations, "S" corporations
and nonprofit organizations |
|
Employer-funded
plan |
|
Contributions
are generally tax deductible to the employer |
|
100%
immediate vesting |
|
Account
balances grow tax deferred until withdrawn |
|
Full
brokerage account option |
|
May be used in conjuction with a Money Purchase Plan |
|
Must
include employees who: -Are a minimum age of 21 -Have worked for the employer for at least two years |
|
Employer
may set more lenient eligibility requirements |
|
Maximum
employer contribution - Lesser of 25% of total net compensation
or $40,000 (for 2003) as indexed thereafter per participant (20%
if self-employed) |
|
Contributions
are discretionary |
|
Distribution
events: -Attainment of age 59 1/2 -Disability -Plan termination -Separation from service -Death |
|
Minimum
distributions required at age 70 1/2 or retirement, whichever is
later |
|
Plan
needs to be adopted by employer's fiscal year-end, usually December
31 |
|
Employer
contributions are due by employer's tax-filing deadline, including
extensions |
|
Employer
must distribute a Notice to Interested Parties when plan is established
and a Summary Plan Description and Summary Annual Report to employees |
|
Employer
files annual Form 5500 as required by IRS |
|
Annual
1099-R tax reporting |
|
Annual
Plan Valuation Statement |
|
Annual
Minimum Required Distribution notice sent to investors age 70 1/2
and older |
|
Annual retirement maintenance fee per account. This fee may be subject to correspondent adjustments. Please contact your home office for more information |
|
$75 termination fee |
|
Plan has been restated for GUST, Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) and 2002 Final Minimum Required Distribution (MRD) Regulations |
|
Suitable
for firms with higher, more stable earnings |
|
Available
to sole proprietors, partnerships, corporations, "S" corporations
and nonprofit organizations |
|
Employer-funded
plan |
|
Contributions
are generally tax deductible to the employer |
|
100%
immediate vesting |
|
Account
balances grow tax deferred until withdrawn |
|
Full
brokerage account option |
|
May be used in conjuction with a Profit Sharing Plan |
|
Must
include employees who: -Are a minimum age of 21 -Have worked for the employer for at least two years |
|
Employer
may set more lenient eligibility requirements |
|
Fixed
annual employer contribution rate (minimum of 3%), up to 25% of
total compensation not to exceed $40,000 (for 2003) as indexed thereafter
per participant (20% if self-employed) |
|
Distribution
events: -Attainment of age 59 1/2 -Disability -Plan termination -Separation from service -Death |
|
Minimum
distributions required at age 70 1/2 or retirement, whichever is
later |
|
Plan
needs to be adopted by employer's fiscal year-end, usually December
31 |
|
Employer
contributions are due by employer's tax-filing deadline, including
extensions |
|
Employer
must distribute a Notice to Interested Parties when plan is established
and a Summary Plan Description and Summary Annual Report to employees |
|
Employer
files annual Form 5500 as required by IRS |
|
Annual
1099-R tax reporting |
|
Annual
Plan Valuation Statement |
|
Annual
Minimum Required Distribution notice sent to investors age 70 1/2
and older |
|
Annual retirement maintenance fee per account. This fee may be subject to correspondent adjustments. Please contact your home office for more information |
|
$75 termination fee |
|
Plan has been restated for GUST, Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) and 2002 Final Minimum Required Distribution (MRD) Regulations |
Sharing Plan
|
Typically
for business with 25 or more employees |
|
Available
to sole proprietors, partnerships, corporations, "S" corporations
and nonprofit organizations |
|
Bundled
product including: recordkeeping, trustee, and investment services |
|
Standardized
and non-standardized plan documents available |
|
Allows
for voluntary employee salary-deferral contributions |
|
Employer
match and discretionary profit sharing contributions |
|
Vesting
schedules available for employer contributions |
|
Account balances grow tax deferred until withdrawn |
|
Choice of mutual fund investment options from multiple mutual fund families, as well as a self-directed brokerage option |
|
Must
include employees who: -Are a minimum age of 21 -Have worked for at least one year (two years if a Profit Sharing Plan only, which requires immediate 100% vesting) |
|
Certain
employees may be excluded as provided in the Standardized and Non-Standardized
plan ducuments |
|
Maximum
employer contribution - lesser of 25% of total net compensation
or $40,000 (for 2003) as indexed theteafter per participant (20%
if self-employed) |
|
Maximum
employee salary deferral [401(k)] contribution - lesser of 100%
of compensation or $12,000 (for 2003) - may be eligible for employer
match |
|
For
those individuals who are projected to be age 50 or older at the
end of the taxable year, an additional "catch-up" contribution
of $2,000 (for 2003) may be made |
|
Employer
may make annual (discretionary) profit-sharing contribution |
|
Distribution
events: -Attainment of age 59 1/2 -Disability -Plan termination -Separation from service -Death |
|
Minimum
distributions required at age 70 1/2 or retirement, whichever is
later |
|
Hardship withdrawals are permitted |
|
Loans are permitted |
|
Plan
needs to be adopted by employer's fiscal year-end, usually December
31 |
|
Employer
contributions due by employer's tax-filing deadline, including extensions |
|
Employer
must distribute a Notice to Interested Parties when plan is established
and a Summary Plan Description and Summary Annual Report to employees |
|
Required
compliance tests |
|
"Signature
ready" annual IRS Form 5500, 1099-R and 945 reporting |
|
Recordkeeping
services are provided by Investmart of New England, Inc |
|
Annual
Minimum Required Distribution notice sent to investors age 70 1/2
and older |
|
A fee schedule can be obtained by contacting the Statetrust |
|
Plan has been restated for GUST, Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) and 2002 Final Minimum Required Distribution (MRD) Regulations |