At Amerisal Financial we implement retirement plans for individuals and small business owners; our services are tailored to help clients achieve their invesstment goals.

RETIREMENT PLANS FOR INDIVIDUALS

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    • Traditional IRA – A tax-deferred individual retirement account that allows individuals to make limited annual contributions.
    • ROTH IRA’s – An individual retirement account allowing a person to set aside after-tax income, up to a specified amount per year.
  • Rollover IRA’s and 401(k) Rollovers – A traditional individual retirement account that holds money transferred from another qualified retirement plan.
RETIREMENT PLANS FOR SMALL BUSINESSES

At Amerisal Financial, we set up and manage tailored retirement plans to suit the needs of each individual business. Retirement plans allow businesses to provide benefits to its employees; both employers and employees can make tax deductible contributions.

  • SIMPLiStock_000006648978XSmallE IRA’s – Savings Incentive Match Plan for Employees (SIMPLE IRA) permits employers to offer a salary deferral plan to their employees.
  • SEP IRA’s – Simplified Employees Pension IRA (SEP IRA) is a program that permits employers to make tax deductible contributions on behalf of themselves and their employees.
  • Solo 401(k) – Also known as the individual 401(k) or uni-k works much the same as a 401(k). However, a Solo 401(k) is strictly for sole proprietors who have no employees (although your spouse may contribute if he or she earns income from your business).

Retirement planning services

Initiation seminars
Educational seminars
One-on-one asset allocation selection
Ongoing financial planning
Account performance and portfolio reviews

2018 Contribution Limits and Income Guidelines for Traditional, SEP, ROTH, and SIMPLE IRAs

Click on the arrows for additional information

Traditional IRA

In 2018, the maximum contribution to a traditional IRA for a single individual is $5,500, with an additional $1,000 (total of $6,500) if you are age 50 or older by December 31st. [Contributions are not allowed after age 70 ½.]

Any individual, married or single, who is not eligible to make deductible IRA contributions, may make non-deductible IRA contributions up to the contribution limit of $5,500 per tax year ($6,500 if over age 50), regardless of AGI or participation in an employer-sponsored retirement plan.

 

Your Tax Filing Status Is:

Your Taxable

Adjusted Gross Income:

2018 Traditional IRA Tax-Deductibility Limits:
Single or head of household or married filing separately and you

did not live with your spouse at

any time during the entire year (covered by a retirement plan at work)

Beneath $63,000 Full Deduction
Between $63,000 and $73,000 Partial deduction
Above $73,000 No Deduction Allowed
Married filing jointly combined income (only one spouse is covered

by a retirement plan at work)

For the spouse not covered by a retirement plan at work:
Less than $189,000 Full Deduction up to the maximum
Between $189,000 and $199,000 Your deduction starts to phase out
More than $199,000 No deduction allowed
For the spouse who is covered by a retirement plan at work:
Less than $101,000
Between $101,000 and $121,000
More than $121,000
Married filing jointly (both spouses are covered by a retirement plan at work) Less than $101,000 Full Deduction up to the maximum
Between $101,000 and $121,000 Your deduction starts to phase out
More than $121,000 No deduction allowed
Married filing separately (if either spouse participates in a work plan) Between $0 and $10,000 Partial deduction
Above $10,000 No deduction allowed for either spouse

SEP IRA

For 2018, the annual contributions an employer makes to an employee’s SEP-IRA cannot exceed the lesser of: 25% of compensation or $55,000.

Contributions must be made in cash (not stock) and can be made up until the tax filing deadline for the company, including extensions, for the tax year to which the qualifying contribution for SEP IRA will apply.

A SEP IRA must be established by April 15 of the current year for it to apply to the previous year.

Note: the contribution limit for self-employed persons is more complicated; barring limits, it is approximately 18.6% of net profit.

ROTH IRA

You may be able to contribute to a Roth IRA for yourself or your spouse if you have earned income that falls below the following limits:

Filing Status AND Your Adjusted Gross Income is … Then you can contribute
Single, head of household, or married filing separately and you did not live with your spouse at any time during the year Less than $120,000 You can contribute up to $5,500 ($6,500 if you are age 50 or older)
At least $120,000 but less than $135,000 The amount you can contribute is reduced
$135,000 or more You cannot contribute to a Roth IRA
Married filing jointly or qualifying widow(er) Less than $189,000 You can contribute up to $5,500 ($6,500 if you are age 50 or older)
At least $189,000 but less than $199,000 The amount you can contribute is reduced
$199,000 or more You cannot contribute to a Roth IRA
Married filing separately and lived with your spouse at any time during the year Less than $10,000 You can contribute a reduced amount
Equal to or more than $10,000 You cannot contribute to a Roth IRA

A ROTH IRA must be established by April 15th of the current year.

SIMPLE IRA

An employee may tax-defer up to $12,500 for 2018. Employees over age 50 are allowed to make catch-up contributions of up to $3,000 (for a total of $15,500). Employees who are age 70 ½ or over may make salary deferral contributions to their SIMPLE IRAs and employers must continue to make matching contributions. However, an employee who is age 70 ½ must also begin to take required minimum distributions from the account.

Employee contributions to a SIMPLE IRA plan are not deductible by participants from their income on their Form 1040. Employee salary reduction contributions to a SIMPLE IRA are not included in the “Wages, tips, other compensation” box of Form W-2, Wage and Tax Statement, and are not reported as income on your Form 1040.

The plan needs to be in place by September 30th to make contributions for the current year.

SOLO 401(k)

The limit on employee elective deferrals (for traditional and safe harbor plans) is:

  • $18,500 in 2018 ($18,000 in 2015 – 2017)
  • The $18,500 amount may be increased in future years for cost-of-living adjustments

Generally, you aggregate all elective deferrals you made to all plans in which you participate to determine if you have exceeded these limits. If a plan participant’s elective deferrals are more than the annual limit, find out how you can correct this plan mistake. Catch-up contributions for those age 50 and over at the end of the calendar year, if permitted by the 401(k) plan, is $6,000 in 2015 – 2018.

A Solo 401(k) must be in place by December 31st of the current year.

Neither Amerisal Financial, Lucia Reynolds, not SCF Securities offer legal or tax advice. This material is not intended to replace the advice of a qualified tax advisor or attorney. Please consult legal or tax professionals for specific information regarding you individual situation.

It is possible that these rules may change in the future. Please see www.irs.gov for current information.