Eligible Employees include anyone who is at least 21 Years old and who worked for the Employer during at least 3 of the last 5 years and received at least 550$ in compensation in 2012. High Lights are listed below:
1. Allowable Contribution is 25% of the wages can be contributed. The Maximum Contribution is limited to $50,000.
2. 10% Penalty For Early Withdrawal (Before 59 1/2 Yrs. Age) with some exceptions. Withdrawals must begin after 70 1/2 Age.
3. Plan must be established and contributions made by Tax Return due date including extensions.
4. Employer contribution is not required. Borrowing is not permitted.
5. Rollover to SEP IRA, Traditional IRA, or Qualified Plan is permitted.
6. Penalty for excess contribution is 6%.
For Q & A Contact :
Kash, @ Yajnik & Mehta Associates (925) 963 4891
Linked-In : kyajnik@yajnikandmehta.com
Facebook : kash@yajnikandmehta.com
Twitter : Kash_Yajnik@kash_yajnik
No comments:
Post a Comment