SMA-IRA

A Simplified Employee Pension (SEP-IRA) is a traditional IRA set up by an employer for a firm’s employees.  An employer may contribute up to $40,000 or 25% of an employee’s compensation annually to each employee’s IRA.

* The above fees are current but are subject to change
The financial services are intended to serve as a basis for further discussion with your other professional advisors.  The actual application of some of these concepts may be the practice of law, and is the proper responsibility of your attorney.

1. A Traditional IRA is the term for a regular IRA available to those under age 70 ½ who have earned income (i.e., job compensation).  Earnings within the traditional IRA grow tax-deferred until withdrawal.  Withdrawals must begin, and will be taxed, when the owner reaches age 70 ½.  If required distributions are not taken at that age, a 50% penalty will be assessed on the amount not taken.  When made, contributions may or may not be tax deductible. 
2. A Spousal IRA is either a traditional or Roth IRA funded by a married taxpayer in the name of his or her spouse who has less than $3,000 in annual compensation.  The couple must file a joint tax return in the year of the contribution.  The working spouse may contribute up to $3,000 per year to the Spousal IRA and up to $3,000 per year to his or her own IRA.  A couple, then, may contribute up to $6,000 per year provided neither IRA receives more than $3,000.
3. A Rollover (Conduit) IRA is a traditional IRA set up by an individual to receive a distribution from a qualified retirement plan.  Distributions transferred to a rollover IRA are not subject to any contribution limits.  Additionally, the distribution may be eligible for subsequent transfer into a qualified retirement plan available through a new employer.  To retain this eligibility through December 31, 2001, the IRA must be composed solely of the original distribution and earnings (i.e., no other contributions or rollovers may be added to or mingled with the IRA), and the new employer’s plan must allow the rollover.  After January 1, 2002, commingling of conduit IRA money with other IRA or qualified retirement plan money is permitted, and the mixing of such monies will have no impact on the ability to transfer those IRAs to a new employer’s retirement plan.

Annual Administrative Fee       $25.00

The above fees cover the following:

1. Annual Reports (5498s)
2. Quarterly Reports
3. 1099-R reporting
4. Minimum distribution calculations
5. Annual required minimum distribution
6. Toll-free customer assistance