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					                                                     Cash Management Solutions
                                                     Small Business Retirement and
                                                      Retirement Solutions
                                                      Small Business
You Have a Vision,
We Have a Way.




Who’s Here Today?




   • How many of you own your own business?
   • What kind of business do you run?
   • How many of you already have a retirement
     plan for your business?
   • What type of plan are you familiar with or do
     you have?
   • How many of you have employees?
   • How many employees do you have?




                                                                                     1
Today’s Agenda



                                                               • Importance of saving for
                                                                 retirement
                                                               • Benefits of establishing a
                                                                 retirement plan
                                                               • Your retirement plan options
                                                               • Cash Management and
                                                                 Business Planning
                                                                 Alternatives
                                                               • Next steps: How Fidelity
                                                                 can help




How Much Will You Need to Retire?




                                                             According to some retirement
                                                             planning experts, you may
                                                             need:
                                                             1. Approximately 85%
                                                                of your peak annual
                                                                pre-retirement income
                                                                each year you’re retired.
                                                             2. Income for approximately
                                                                20 to 30 years.*

*Source: Life Expectancy Tables taken from IRS Publication 590, Individual Retirement Arrangements (IRAs), Table 1 (Single Life
Expectancy – For Use by Beneficiaries).




                                                                                                                                  2
  Even Low Inflation Can Hypothetically
  Damage Purchasing Power


$120,000
                                                                                                                            $104,688
$100,000                                                                                                 $90,305
                                                                                     $77,989
 $80,000                                                         $67,195
                                             $57,963
                                             *
 $60,000                 $50,000                                                                                          In 25 years, at just a
                                                                                                                            3% annual rate of
 $40,000                                                                                                                     inflation, your
                                                                                                                         expenses could more
                                                                                                                         than double what they
 $20,000                                                                                                                       are today.

            $0
                           today                    5                  10                  15                  20                  25

   This chart is for illustrative purposes only. Numbers were calculated based on a hypothetical 3% rate of inflation to show the effects of inflation
   over time; actual inflation rates may be more or less and will vary.




  Where Will That Money Come From?


                                                         2%
                                                        Other


                                17.8%                               18.9%                                       Social Security
                              Your Own                          Social Security                                 may cover less
                             Investments
                                                                                                               than 20% of your
                                                                                                              retirement income
                                                                                                                   – You are
                                                                           21.2%
                                                                                                                responsible for
                                                                          Pension
                                40.1%                                                                               the rest.
                            Earned Income




Source: Social Security Administration, Office of Policy, “Income of the Aged Chartbook, 2004”, released September 2006. Shares of aggregate income for
households with income if $44,129 or more. This chart is for illustrative purposes only.




                                                                                                                                                          3
Benefits of Establishing a Retirement Plan




                            1. Makes it easier to save
                               for retirement
                            2. Helps attract and retain
                               employees
                            3. May reduce current taxes
                               for you and your employees
                            4. Allows assets to grow
                               tax deferred




Possibly Reduce Taxable Income
for You and Your Employees




                   TAX ADVANTAGES


   EMPLOYER                              EMPLOYEE
 CONTRIBUTIONS                         CONTRIBUTIONS



 Deductible as a                      Possibly Reduce
Business Expense                   Current Taxable Income




                                                            4
   Small Business Employees View Offering a
   Retirement Plan as “Critical”
                                                                                                                Half of Small
                                                                                                              Business Workers
                                                                                                          Who Have a Retirement Plan
                                                                                                          Would Not Join A Firm That
                                                                                                            Does Not Have One.*
                                                                                                                        *Synovate   Research




   The Power of Tax-Deferred Growth

          Hypothetical Growth (after-tax) of Annual Investments to a 401(k) vs. a Taxable Account

                      $1,200,000                                                                          $1,137,072


                      $1,000,000                                                               $910,195

                        $800,000

                        $600,000                                                $493,483
                                                                    $429,043
                        $400,000

                        $200,000        $155,506 $166,315


                                $0
                                              10 Years                   20 Years                    30 Years

                         Taxable Account: Annual $11,250 After-Tax Investment ($15,000 - $3,750 tax)
                         401(k) Plan: Annual $15,000 Pre-Tax Investment

This hypothetical example compares annually investing $15,000 pre-tax in a 401(k) to $11,250 after tax ($15,000 less $3,750 for taxes
assuming a 25% federal income tax rate) in a taxable account on January 1 of each year for the years indicated. Assumptions: (1) 7%
annual rate of return, (2) an imputed constant annual federal income tax rate of 17% on taxable account earnings (based on a mix of
short and long-term capital gains, interest and dividends), (3) a single lump-sum distribution from the 401(k) at the end of the specified
periods with the entire balance being subject to a 25% federal ordinary income tax rate at that time, and (4) 401(k) participant is over age
59½. The ending values do not reflect fees or inflation. If they did, amounts would be lower. 401(k) distributions before age 59½ may also
be subject to a 10% penalty. Systematic investing does not ensure a profit and does not protect against loss in a declining market. This
example is for illustrative purposes only and does not represent the performance of any security.




                                                                                                                                               5
Your Retirement Plan Options




                                  • SEP-IRA
                                  • Self-Employed 401(k)
                                  • SIMPLE-IRA Plan
                                  • 401(k)




Range of Plan Choices




  Business Type                Plan Choices

                               • SEP-IRA
  Sole Proprietors
                               • Self-Employed 401(k)


  Small Businesses             • SIMPLE-IRA
  with Employees               • 401(k) for Small to
                                 Mid-Sized Businesses




                                                           6
A Guide Summarizing Plan Features




Overview of SEP-IRAs



                         • Key advantage: Easy to set
                           up and maintain
                         • Eligible employers: Any
                           self-employed individual or
                           small-business owner
                         • Funding responsibility:
                           Funded solely by employer
                           contributions
                         • Administrative
                           responsibilities: No annual
                           tax filings




                                                         7
Who May Find a SEP-IRA Attractive?




Self-employed people and business owners who:

                           • Have variable incomes
                           • Look for larger but flexible
                             annual contributions
                           • Seek tax deductions
                           • Want a plan that’s easy
                             to administer




Overview of Self-Employed 401(k) Plans




                          • Key advantage: Generous
                            contribution limits
                          • Eligible employers: Any
                            self-employed individual or
                            small-business owner
                          • Funding responsibility:
                            Recognizes business owner
                            as employer and employee




                                                            8
Overview of Self-Employed 401(k) Plans




                        • Employer contributions
                          (0%–25%)
                        • Employee salary deferral
                          contributions
                           – 100% of compensation up to
                             $15,500
                           – Additional catch-up contribution
                             of $5,000 (if age 50 or older)
                        • Administrative responsibilities
                           – Requires a plan administrator
                           – Annual Form 5500 Filing




Who May Find a Self-Employed 401(k) Plan Attractive?

                         Owner-only businesses who:
                         • Are seeking to make the
                           largest possible contribution
                         • Want to take advantage of the age
                           50 catch-up contribution
                         • For 2007, have net business profits
                           under $225,000 or W-2 wages
                           under $180,000
                         • Do not have employees other than a
                           spouse
                         • Are willing to perform plan
                           administration




                                                                 9
Comparing Plans for 2007



                                                                                                            Self-Employed
                                                                        SEP-IRA
                                                                                                                 401(k)
   Employer’s Tax-Deductible                                               $25,000                                   $25,000
   Contribution up to 25% of                                                                                 (25% x $100,000)
                                                                   (25% x $100,000)
   compensation*
                                                                                                                          +
                                                                                                                100% of
    Employee’s Salary                                                        None
                                                                                                            compensation, up
    Deferral*
                                                                                                               to $15,500
                                                                                                                          +
   Employee’s Catch-Up                                                       None                           If age 50 or older,
   Deferral                                                                                                    not to exceed
                                                                                                                   $5,000

  Final Total Contribution                                                $25,000                                    $50,500

*Maximum compensation on which contributions can be based is $220,000 for 2006 and $225,000 for 2007. For self-employed individuals,
compensation means earned income. Hypothetical example for illustrative purposes only. Maximum salary deferral is 100% of compensation up to
$15,000 for 20006 and $15,500 for 2007.




Overview of SIMPLE-IRAs



                                                                       • Key advantage: Salary
                                                                         reduction plan with less
                                                                         administration
                                                                       • Eligible employers:
                                                                         Businesses with 100 or
                                                                         fewer eligible employees
                                                                       • Funding responsibility:
                                                                         Employer shares cost
                                                                         of funding employees’
                                                                         retirement
                                                                         Employees can elect to
                                                                         make contributions




                                                                                                                                               10
Overview of SIMPLE-IRAs

• Employee Deferral (Pre-Tax) contributions
      – Up to 100% of compensation (max. of $10,500)
      – Additional catch-up contribution of $2,500 (if age 50
           or older)
• Employer contributions
      – Match employee contribution (up to 3% of
           compensation/max. of $10,500)
      – Or contribute up to 2% of employee compensation
           (max. of $4,500)*
• Vesting: All contributions vest immediately
• Administrative responsibilities: No annual tax
    filings required; certain annual employee notifications
 *The maximum compensation on which contributions and SIMPLE-IRA employer 2% non-elective contributions can be based is $225,000 for
 the 2007 year plan. For self-employed people, compensation means earned income.




Who May Find a SIMPLE-IRA Attractive?




                                                         Small businesses who:
                                                         • Want employees to share
                                                           responsibility for their own
                                                           retirement
                                                         • Can contribute something
                                                           toward their employees’
                                                           retirement
                                                         • Prefer administrative
                                                           simplicity




                                                                                                                                       11
Overview of 401(k)s for Small to Mid-Sized Businesses




                              • Key advantage: More
                                features, more flexibility
                              • Eligible employers: Any
                                type of public or private
                                company, typically with 20+
                                employees
                              • Funding responsibility:
                                Employee and employer
                                may elect to contribute




Overview of 401(k)s for Small to Mid-Sized Businesses



 • Employee salary-deferral contributions
    – 100% of compensation up to $15,500
    – Additional catch-up contribution of $5,000
      (if age 50 or older)
 • Employer contributions (0%–25%)
 • Vesting: Schedule permitted on employer
   contributions
 • Administrative responsibilities: Annual testing
   and reporting




                                                              12
Who May Find a 401(k) Attractive?


 Business owners who:
 • Typically have more than 20 employees
 • Want employees to share responsibility for their
      own retirement
 • Are willing to take on more responsibilities and
      costs in exchange for plan features, service and
      assistance
 • Want to save more than in a SIMPLE-IRA
 • Want dedicated relationship management and
      participant communication and education services




Comparing Plans



2007 EXAMPLE                                         SIMPLE-IRA                                            401(k)

Employer’s                                 Match contributions up to                        Up to 25% of
Contribution                               3% of compensation* for                          compensation,* up to a
                                           participating employees up                       maximum of $45,000
                                           to $10,500
                                                        or
                                           2% of compensation* for
                                           eligible employees up to
                                           $4,500
Employee’s Salary                          Up to 100% of                                   Up to 100% of
Deferral                                   compensation, not to                            compensation, not to
                                           exceed $10,500                                  exceed $15,500

Employee’s Catch-Up An additional salary                                                    An additional salary
Deferral            deferral of up to $2,500 if                                             deferral of up to $5,000 if
                    age 50 or older                                                         age 50 or older

Dollar amounts shown reflect 2007 limits. *Maximum compensation on which contributions can be based is $225,000. Compensation means
earned income.




                                                                                                                                      13
Next Steps




                           Deciding which
                           plan is right for you




Key Factors When Choosing a Plan




• Whether you have employees
• Whether you want your employees to contribute
  to their retirement
• How much you are willing to contribute each year
• How much administrative responsibility you are
  willing to assume
• How much you are willing to pay for your plan
• What features, services and assistance you prefer




                                                      14
  Getting Started




   Step 1           Choose a plan


   Step 2           Set up your plan


   Step 3           Notify your employees


   Step 4           Contribute to the plan




Manage Your Money and Investments with Ease with the
Fidelity Account® for Businesses


  • Trade, invest, and manage
                                  Ask about how these
    your finances all in one
                                  additional solutions can help
    account.
                                  your business:
  • Access your money for
                                  • Business succession planning
    day-to-day finances and
    expenses.                     • Estate planning

  • See all of your investments   • Life insurance
    and finances in one place.    • Long-term care insurance
  • Trading features you need     • Charitable gifting solutions
    for your business.




                                                                   15
Next Steps




           Put Fidelity’s Resources to
                  Work for You

 • Money management expertise                                                             • Professional service
 • Full range of plan choices                                                             • Retirement experience
 • Wide range of investment options • Extensive support
                                      for employees




                                       Thank You


Before investing, consider the funds’ investment objectives, risks, charges and expenses. Contact
Fidelity for a prospectus containing this information. Read it carefully.

This seminar herein is general in nature and should not be considered legal or tax advice. Fidelity does not provide legal or tax advice. This information
is provided for general educational purposes only and you should bear in mind that laws of a particular state and your particular situation may affect this
information. You should consult with your attorney or tax advisor regarding your specific legal or tax situation.
Brokerage services provided by Fidelity Brokerage Services, Member NYSE, SIPC, 100 Summer Street, Boston, MA 02110.                   482759.1.0

1.801813.106




                                                                                                                                                              16

				
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