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 (785) 543-5199 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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