The Edge - Quarter 4, 2008 - (Page 35)

amount is $10,500 with a $2,500 catchup contribution in 2008. The business cannot have more than 100 employees, and there cannot be any other plans covering the same employees. Employers are required to make a contribution which participants are 100 percent vested in at all times. Participants can borrow from their account, and the plan is not subject to nondiscrimination testing or top heavy rules. Simple IRA—For small businesses with 100 employees or fewer, this plan is similar to the Simple 401(k) plan except that plan loans are not allowed. The plan is funded by mandatory employer and optional employee contributions. Employee contributions are limited to the same amounts as Simple 401 (k) plans. SEP IRA —This plan is for selfemployed and small businesses with fewer than 25 employees. Funded by employer contributions only, the SEP IRA may be supplemented with another retirement plan. Once you thoroughly evaluate the type of retirement plan(s) that will best meet your objectives (with the advice of a tax professional), you then need to take the necessary steps to establish the plan(s) within your company. Many of these plans must be established and communicated to employees under strict timelines. Depending on the type of plan you select, you may need to arrange a fund for its assets, adopt a written policy, notify eligible employees and develop a tracking system. You will also have to ensure you are covering eligible employees, making the appropriate contributions, adhering to changes in retirement law, managing the plan assets, communicating to plan participants and distributing the appropriate benefits. It is important to note that there are many different regulations today that govern retirement plans as well as certain exceptions and/or additional details to some of the items discussed here. Therefore, it is important to involve a tax advisor and fi nancial planning expert familiar with retirement plans to help you design a plan to meet your company’s goals and objectives. Also, if you have more than 100 employees participating in a qualified plan, you may be required to have an annual audit of the plan. Contact your accountant for additional information. The technical information in this article is necessarily brief. No final conclusion on these topics should be drawn without further review and consultation. Please be advised that, based on current IRS rules and standards, the advice contained herein is not intended to be used, nor can it be used, for the avoidance of any tax penalty assessed by the IRS. | Rona ld H. Zirkel i s pr incipal and Yvonne Trella is marketing director of Manufacturing & Distribution Services Group, Cowan, Gunteski & Co., P.A., Toms River, New Jersey, a diversified certified public accounting firm. For more information, click: rzirkel@cowangunteski.com. 360269_United.indd 1 12/17/07 11:02:03 AM 370644_garrett.indd 1 THE EDGE 35 3/13/08 11:30:18 PM http://www.swimpool.com http://www.garrettliners.com

Table of Contents Feed for the Digital Edition of The Edge - Quarter 4, 2008

The Edge - Quarter 4, 2008 Contents The President’s Message New Pool/Spa Federal Safety Act Worried About the 2009 Market? Treating Hot Water? Project Focus The 411 on UV Disinfection for Pools and Spas The Advantages of Seeding Aggregate Surfaces Pool and Spa Industry Wins Gold Choosing a Retirement Plan To Get Best Coverage at Lowest Cost - Shop Now Index of Advertisers

The Edge - Quarter 4, 2008

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