| John, Can't remember if we discussed this, but we had a question as to whether we could write off a couple of dead-beat clients while sending them 1099s for the unpaid value of our services. Is that an authorized action? Neal Neal A. Puckett, Esq LtCol, USMC (Ret) Puckett & Faraj, PC 1800 Diagonal Rd, Suite 210 Alexandria, VA 22314 703.706.9566 The information contained in this electronic message is confidential, and is intended for the use of the individual or entity named above. If you are not the intended recipient of this message, you are hereby notified that any use, distribution, copying of disclosure of this communication is strictly prohibited. If you received this communication in error, please notify Puckett & Faraj, P.C. at 703-706-9566 or via a return the e-mail to sender. You are required to purge this E-mail immediately without reading or making any copy or distribution. On Aug 5, 2011, at 12:52 PM, Renner, John wrote: Neal and Marcy IRA – this is a the employee level – no action by firm SEP – this is the best avenue to go down – it produces the largest contribution you should add 401(k) componet Simple doesn’t produce the retriemnt contributions you desire ) Payroll Deduction IRA (Employee contributes, $5000 max for 2010/2011; 2) SEP (Firm contributes only, no employees - up to 25% of compensation but less than $49K, must be equal for each employee); 3) Simple IRA (Employee and Firm contributes, max $11,500 in 2010/2011 - over 50 years can add $2,500 more - Firm must match 100% of first 3% or lowered to 1% in 2 out of 5 years; or 2% of each employee's compensation); and 4) Safe Harbor 401K - for high level salary deferrals (Employee and Firm contributes, $16,500 + $5,500 for 50 and over / Firm up to 100% of compensation or $49,000 / Firm contributes up to 25% of aggregate compensation of all participants From: Puckett Neal [mailto:neal@puckettfaraj.com] Sent: Friday, August 05, 2011 10:21 AM To: Renner, John Cc: Atwood Marcy Subject: Fwd: Simple IRA vs SEP John, Thanks for your answers to the July questions. Here were the June 1st questions that may have also been lost in your Junk mail. We were wondering what had happened! Neal Neal A. Puckett, Esq LtCol, USMC (Ret) Puckett & Faraj, PC 1800 Diagonal Rd, Suite 210 Alexandria, VA 22314 703.706.9566 The information contained in this electronic message is confidential, and is intended for the use of the individual or entity named above. If you are not the intended recipient of this message, you are hereby notified that any use, distribution, copying of disclosure of this communication is strictly prohibited. If you received this communication in error, please notify Puckett & Faraj, P.C. at 703-706-9566 or via a return the e-mail to sender. You are required to purge this E-mail immediately without reading or making any copy or distribution. Begin forwarded message: Date: June 1, 2011 3:46:58 PM EDT Subject: Fwd: Simple IRA vs SEP John, Good afternoon. Could you please review the fruit of Marcy's research below and recommend the best plan for us to pursue for the partners and employees? Thanks, Neal Neal A. Puckett, Esq LtCol, USMC (Ret) Puckett & Faraj, PC 1800 Diagonal Rd, Suite 210 Alexandria, VA 22314 703.706.9566 The information contained in this electronic message is confidential, and is intended for the use of the individual or entity named above. If you are not the intended recipient of this message, you are hereby notified that any use, distribution, copying of disclosure of this communication is strictly prohibited. If you received this communication in error, please notify Puckett & Faraj, P.C. at 888-970-0005 or via a return the e-mail to sender. You are required to purge this E-mail immediately without reading or making any copy or distribution. Begin forwarded message: Date: June 1, 2011 8:12:33 AM EDT Subject: Simple IRA vs SEP N, please contact John Renner and ask which vehicle would be the best tax treatment for the Firm. IRS Publication has four options: 1) Payroll Deduction IRA (Employee contributes, $5000 max for 2010/2011; 2) SEP (Firm contributes only, no employees - up to 25% of compensation but less than $49K, must be equal for each employee); 3) Simple IRA (Employee and Firm contributes, max $11,500 in 2010/2011 - over 50 years can add $2,500 more - Firm must match 100% of first 3% or lowered to 1% in 2 out of 5 years; or 2% of each employee's compensation); and 4) Safe Harbor 401K - for high level salary deferrals (Employee and Firm contributes, $16,500 + $5,500 for 50 and over / Firm up to 100% of compensation or $49,000 / Firm contributes up to 25% of aggregate compensation of all participants |