Anyone, regardless of age with Self Employed (SE) Income is eligible to participate in Self Employed Retirement Plan. If contributions are made for Self Employed, they must also be made for eligible employees. High Lights are listed below:
1. Allowable Contribution is 20% of Net SE Income after SE Tax Deduction. 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
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