lkj

What we offer:

LKJ Financial offers a variety of retirement plan options for our non-profit organizations, a few of which include DiverseWorks, FotoFest, Hope Stone Inc., Pink Ribbons Project and Lawndale Art Center. In addition, we work with self-employed clients to set up IRAs and/or solo 401(k) plans, depending on each client’s needs.

2016 Plan Contribution Limits
Plan 2016 Limit
403(b), 401(k), 457(b) and SAR-SEP Plans Elective Deferral Limit
PLUS: Age 50 & Over Catch-Up
PLUS: 403(b) Service-Based Catch-Up for 15+ years with Employer
$18,000
$6,000
$3,000
Roth/Traditional IRA
PLUS: Age 50 & Over Catch-Up
$5,500
$1,000
SIMPLE Plan Elective Deferral Limit
PLUS: Age 50 & Over Catch-Up
$12,500
$3,000
Defined Contribution Participant Maximum Contribution
Maximum Annual Compensation Used to Determine Contribution for Most Plans
$53,000
$265,000

Non-profit organizations are often unable to support the costs associated with employer-sponsored 401(k) plans. However, for organizations with 501(c)(3) status, a 403(b) retirement plan can provide an excellent alternative. SIMPLE and SEP IRAs can also offer appropriate solutions.

A non-ERISA, non-match Traditional or Roth 403(b) plan has no setup or ongoing administrative costs, and offers a variety of investment options for employees of non-profit organizations, allowing them to contribute up to the allowable limits (see above chart) annually.

A SIMPLE IRA allows employee deferrals up to the allowable limits (see above chart) plus a small employer match with minimal reporting and administration.

A SEP IRA allows employers to contribute up to 25% of each employee’s salary up the allowable maximum (see chart above) with minimal cost, reporting and administration.