A Simplified Employee Pension (SEP) is a retirement plan that self-employed people should take a look at.  To adopt a SEP plan an employer needs to complete IRS Form 5305-SEP.  This form is not filed with the IRS; the employer merely keeps it on file. more…

The most popular retirement plan adopted by businesses is the 401(k) plan.  However, there are other options for business owners.  For some small businesses, the SIMPLE plan makes the most sense. more…

The Roth 401(k) plan is becoming a more popular retirement plan option offered by employers.  This has become the foundation for many people's retirement plan.  Unlike a traditional 401(k) plan where contributions are made pre-taxed, contributions to a Roth 401(k) plan are made after tax.  more…

Many employers will offer a 401(k) to their employees.  A 401(k) plan offers many advantages to employees.  The biggest advantage is tax-deferred investing.  These accounts are not taxed until distributions are made. more…

Last week we discussed the IRA.  This week we'll talk about the Roth IRA.

Who is eligible for a Roth IRA?

• You need to have earned income at least up to the amount of the contribution.
• There is a phase out for Roth IRA's based on your Adjusted Gross Income.  In 2009, it is as follows: more…