lkj

What we provide:

LKJ Financial can help you tailor a retirement plan that fits the needs of your organization and employees.

Whether an employer-sponsored plan like a 401(k), 403(b), SEP or SIMPLE IRA, profit sharing plan or defined benefit plan – or a one-person solution like a Solo 401(k) or IRA — we help guide you through set-up and enrollment and offer ongoing support once your plan is in place.

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

If you want to contribute to an employee’s plan, your options may include:

  • Company-Sponsored 401(k)

  • Profit Sharing Plan

  • SIMPLE IRA

  • SEP IRA

  • Defined Benefit Plan

A traditional 401(k), Roth 401(k), 403(b), SIMPLE IRA allows employees make salary deductions to save for retirement with an employer-sponsored match to boost savings.

With SEP IRAs and Defined Benefit plans, only the employer contributes, on behalf of the employee.

Tax treatment for the EMPLOYER: An employer contribution is a deductible business expense, as are the plan setup/administration fees.Tax treatment for the EMPLOYEE: With a traditional 401(k), 403(b) or SIMPLE IRA, any pre-tax salary deferrals lower annual taxable income. At age 59 ½, an individual can withdraw retirement funds without an IRS penalty, and will pay taxes on distributions at that time. Roth 401(k) or 403(b) contributions are made with after tax dollars; at age 59 ½, distributions – including principal and any growth – are tax-free.
Loans: Some plan provisions allow loans of up to 50% or more against the account value without incurring taxes or penalties, as long as repayment is made in accordance with the terms of the loan. No loans are allowed with an IRA.

If you do not plan to match employee contributions, your options may include:

  • Non-match 401(k)

  • Non-match 403(b)

  • Individual Retirement Account (IRA)

With a non-match 401(k), the employer will be subject to top heavy and key employee compensation testing.

With a non-match 403(b) (available for 501(c)(3) non-profit organizations), there are no set-up or maintenance costs, and no testing requirements for the employer.

Additionally, LKJ Financial can work with an employees on a one-on-one basis to provide guidance and assistance with their own Traditional or Roth IRAs.

Tax treatment for the EMPLOYER: Any setup/administration fees are deductible business expenses.Tax treatment for the EMPLOYEE: With a traditional 401(k), 403(b) or IRA, any pre-tax salary deferrals lower annual taxable income. At age 59 ½, an individual can withdraw retirement funds without an IRS penalty, and will pay taxes on distributions at that time. Roth 401(k),  403(b) or IRA contributions are made with after tax dollars; at age 59 ½, distributions – including principal and any growth – are tax-free.
Loans: Some plan provisions allow an individual to take a loan of up to 50% or more against the account value without incurring taxes or penalties, as long as repayment is made in accordance with the terms of the loan. No loans are allowed with an IRA.