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Farmers State Bank
BUSINESS RETIREMENT OPTIONS
We
can assist our business customers in implementing a retirement program
for the owners and employees.
Retirement plans for business include:
- Simplified Employee Pension Plan (SEP)
- An SEP plan is an IRA funded by a company for the benefit of
its employees. This plan allows employers to contribute up
to
15% or $42,000 of the employee's annual salary, whichever is
less.*
Employers may change their contribution amount annually, or even
skip some years.
- Savings Incentive Match Plan for Employees
(SIMPLE-IRA) - A SIMPLE plan is primarily employee-funded
and allows employees to contribute up to $10,000 of their pre-tax
salary. If an employee participates, the employer is generally
required to contribute either 3% of the salary of each participating
employee, or 2% of the salary of every eligible employee.
An additional "catch up" contribution of $2,000 maybe made by
employees over 50.
Call us for detailed information and which one
would fit your needs.
Contact a Farmers State Bank representative
at (888) 879-2183 or email
us for more detailed information on Business Retirement plans.
* In 2000, only compensation up to
$170,000 can be used to figure your contribution.
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