Thanks for your reply, Phil.

Of course AFTER I posted my original message, I found a good
article on the issue!

http://www.kiplinger.com/personalfin.../03/plans.html

I wonder, though, can *I* participate in the SIMPLE 401(k)
(or SEP) while my husband, the other member, elects not to
participate at all? I don't think this is a situation of
discrimination...it is just his choice not to participate.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

<jackie_o01[at]yahoo.com> wrote:

- quote -

The standard correct answer to every tax question as
initially proposed applies here: "It depends." The SIMPLE
allows you to defer a higher percentage of your earnings,
but the SEP allows you to defer a higher $$ amount if your
income is high enough.

Make your projections, decide your goals, then decide what
plan works best.

--
Phil Marti
Clarksburg, MD

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

I am wondering which plan is better for a two member LLC, a
SIMPLE or a SEP? Based on what I have found online, it is
probably the SEP. There seems to be more flexibility and a
higher amount that may be contributed per year.

I would appreciate others opinions on the pros and cons.

Thanks.

Jackie

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >