AsymF <fearful.asymmetry[at]gmail.com> writes:
- quote -

Again, the details of the situation make a difference.
How many other employees there are, the profitability
of the corp, etc.

All the different options have different caps on how much
can be contributed (ie. SEP-IRA up to 25% of employee salary,
401k up to $15.5k plus employer contributions, SIMPLE
maxes at a lot less per year, and must cover everyone, and
defined benefit may actually allow higher-paid older
employees to put a *lot* in but very little for lower-paid
and younger employees). Also the rules on *who* makes the
contribution vary (401k is employee contributions with a
possible match or safe-harbor contribution from employer;
the rest all require larger (or all) to come from the
employer, not the employee).

Do a little reading on some of these basic, knowing
that these are the four main options available - and
then talk to your accountant. Unless it's something
really really simple (ie. it's just you, or you and
one other employee), it's likely too complex a decision
to be made based on a couple of posts to the newsgroup.

FWIW, the SEP-IRA is probably the easiest and cheapest
option to administer and it's very popular for sole
proprietorships. The Individual 401k is gaining in
popularity, since it may allow a greater amount of
money to be put away, especially in proportion to
earnings. SIMPLE is very helpful if you have a
handful of employees and want to make something
available to all of them with very low management
overhead. That's the shortest summary, I can manage.

[and, as usual, I invite further commentary from the
others here who may have more experience actually
setting these things up than I do, and especially
corrections to anything I've said]


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On Mar 14, 10:25 am, BreadWithS...[at]fractious.net wrote:
- quote -

Yes, the officer receives W-2 income and is registered with the ESC as
an employee of the corporation.


======================================= MODERATOR'S COMMENT:
Please trim the post to which you are responding.

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AsymF <fearful.asymmetry[at]gmail.com> writes:

- quote -

Is that officer taking W-2 income from the S-Corp? If so,
a SEP-IRA is perfectly acceptable. The Solo 401k (search
for that term) also works and may allow you to put more
money into the plan.

See, for example, at Fidelity:
<http://personal.fidelity.com/global/...on=solo%20401k
or <http://www.individual401k.com/> which has info about
the four main options available:
Individual 401k, SIMPLE, SEP-IRA and Defined Benefit
There are different circumstances under which any one
may be better than the others.

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On Mar 5, 6:04 am, AsymF <fearful.asymme...[at]gmail.com> wrote:
- quote -

Any ideas? I don't think SEP qualifies, but I had looked into it. Not
sure about a standard 401K either.

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What would by the best type of investment plans for the officer of an
S-corp and why?

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