Welcome To Pacific Retirement Planning

CHOOSING A 401 (K) PLAN

*The 401(k) allows some customizing of plan benefits such as profit sharing.

*The Simple IRA is primary a payroll deduction plan.

	SIMPLE IRA	401(k)
Who’s it for:	Businesses with 100 or less employees	Any type of public or private company
Key Features:	Salary deferral	Flexibility with salary deferral or profit sharing
Fees:	No Administration is required	Can be subject to testing and administration
Who Contributes:	Employee deferrals with optional employer match	Employee deferrals and employer contributions
Employee 2009 Limits:	$10,000 with $2,500 catch-up for age 50 plus	$15,000 with $5,000 catch-up for age 50 plus
Employer 2009 Limits:	Either match Employee’s contributions up to 3% or flat 2% to all employees	Matching or profit share up to 25% of compensation. Employee & employer contributes con not exceed $46,000 with $5,000 catch- up for age 50 plus
Administrative Responsibilities:	No employer tax filings	Form 5500 filings and can be subject to testing
Set Up Deadline	Establish by October 1st	Employer discretion