Open an Account - Retirement Account Types


Our retirement plans are self-directed, allowing you to invest in mutual funds, stocks, bonds and other investments through one consolidated account. With our money market funds, your cash is never idle, even when switching investments.

To open a retirement account, please call 800-872-0711, 8:00 a.m. - 6:00 p.m. ET, Monday-Friday, and a New Accounts representative will be happy to help you. You may also visit our Online Forms page to download an IRA Application.

Please consult a tax specialist regarding your specific financial situation and tax consequences. Muriel Siebert & Co., Inc., does not offer investment, tax or legal advice. For more information on retirement accounts at Siebert, please Contact Us.

Individual Retirement Account (IRA)
An IRA is a special type of a tax-deferred account created by Congress to help individuals save money for retirement. The maximum contribution is the lesser of $5,500 or 100% of compensation for 2016-2017. Individuals 50 or older at the end of the taxable year may make an additional annual "catch-up" contribution of $1,000 for a maximum contribution of $6,500. Click here for more details.

Roth-IRA
Contributions to a Roth IRA are not tax-deductible. Instead, qualified distributions from the account are tax-free. A distribution is qualified and tax-free if certain criteria are met. Maximum contribution is the lesser of $5,500 or 100% of total compensation for the year, if your compensation was less than this dollar limit. Individuals 50 or older at the end of the taxable year may make an additional annual "catch-up" contribution of $1,000 for a maximum contribution of $6,500. Click here for more details.

SEP-IRA
A SEP-IRA account is for business owners seeking a simple, low cost retirement plan. Employers can set aside money in retirement accounts for themselves and their employees. A SEP does not have the start-up and operating costs of a conventional retirement plan and allows for a contribution of up to 25 percent of each employee's pay. Click here for more details.

401(K)
The 401(K) is for employers seeking a retirement plan that allows for employee pre-tax savings and, if desired, employer matching and/or discretionary contributions.

Simple
A Simple plan is for a business with 25 or fewer employees that does not currently contribute to a retirement plan. Simples allow a business to establish a 401(K) type employee savings plan without the administrative costs and complexities typically associated.

Money Purchase Pension Plans
A Money Purchase Pension Plan (Keogh) is appropriate for employers who want contribution flexibility. Money purchase plans have required contributions. The employer is required to make a contribution to the plan each year for the plan participants.The plan is available to sole proprietors, partnerships, corporations, "S" corporations, and nonprofit organizations. The maximum employer contribution is lesser of 25% of compensation or $54,000 (for 2017; $53,000 for 2015 and 2016, subject to cost-of-living adjustments). Click here for more details.

Profit Sharing Plans 
A Profit Sharing Plan is designed for employers who want contribution flexibility. The plan is available to sole proprietors, partnerships, corporations, "S" corporations, and nonprofit organizations. The maximum employer contribution is the lesser of 25% of compensation or $54,000 for 2017 ($53,000 for 2015 and 2016, subject to cost-of-living adjustments for later years).
 
Individual Retirement Account (IRA) details
X

Maximum contribution is the lesser of $5,500 or 100% of compensation for 2016-2017.

Contributions may be tax deductible; however, an individual may also make nondeductible contributions.

For those individuals who are age 50 or older at the end of the taxable year, an additional annual “catch-up” contribution of $1,000 may be made for 2016-2017 for a maximum contribution of $6,500.

Your Traditional 2016 IRA contributions may be tax-deductible. The deduction may be limited if you or your spouse is covered by a retirement plan at work and your income exceeds certain levels.

Roth-IRA details
X

Maximum contribution is the lesser of $5,500 or 100% of total compensation for the year, if your compensation was less than this dollar limit.

For those individuals who are age 50 or older at the end of the taxable year, an additional annual “catch-up” contribution of $1,000 may be made for 2016 for a maximum contribution of $6,500.

A Roth IRA is an IRA that, except as explained below, is subject to the rules that apply to a traditional IRA.
– You cannot deduct contributions to a Roth IRA.
– If you satisfy the requirements, qualified distributions are tax-free.
– You can make contributions to your Roth IRA after you reach age 70½.
– You can leave amounts in your Roth IRA as long as you live.
– The account or annuity must be designated as a Roth IRA when it is set up.

Roth IRA contribution limit
The same general contribution limit applies to both Roth and traditional IRAs. However, your Roth IRA contribution might be limited based on your filing status and income.

Amount of ROTH IRA contributions that you can make for 2016.
The table below shows whether your contribution to a Roth IRA is affected by the amount of your modified AGI as computed for Roth IRA purpose.

Amount of your reduced Roth IRA contribution

If the amount you can contribute must be reduced, figure your reduced contribution limit as follows.

1. Start with your modified AGI.
2. Subtract from the amount in (1):
    a. $184,000 if filing a joint return or qualifying widow(er),
    b. $-0- if married filing a separate return, and you lived with your spouse at any time during the year, or
    c. $117,000 for all other individuals.
3. Divide the result in (2) by $15,000 ($10,000 if filing a joint return, qualifying widow(er), or married filing a separate return and you lived with your spouse at any time during the year).
4. Multiply the maximum contribution limit (before reduction by this adjustment and before reduction for any contributions to traditional IRAs) by the result in (3).
5. Subtract the result in (4) from the maximum contribution limit before this reduction. The result is your reduced contribution limit.

Source: https://www.irs.gov/Retirement-Plans/Individual-Retirement-Arrangements-(IRAs)-1

SEP-IRA details
X

Contributions an employer can make to an employee's SEP-IRA cannot exceed the lesser of:
1. 25% of the employee's compensation, or
2. $54,000 for 2017 ($53,000 for 2015 and 2016) and subject to annual cost-of-living adjustments for later years.

These limits apply to contributions you make for your employees to all defined contribution plans, which includes SEPs. Compensation up to $270,000 in 2017 ($265,000 in 2015 and 2016 and subject to cost-of-living adjustments for later years) of an employee’s compensation may be considered. If you're self-employed, use a special calculation to determine contributions for yourself.

Contributions must be made in cash; you cannot contribute property.

If you’ve contributed more than the annual limits to your SEP plan, find out how to correct this mistake.

SEP-IRA Pros and Cons:
– Easy to set up and operate
– Low administrative costs
– Flexible annual contributions – good plan if cash flow is an issue
– Employer must contribute equally for all eligible employees

Source: https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-seps-contributions
Money Purchase Pension Plans details
X

Money purchase plans have required contributions. The employer is required to make a contribution to the plan each year for the plan participants.

If you establish a money purchase plan, you:
- Can have other retirement plans.
- Can be a business of any size.
- Need to annually file a Form 5500.

Pros and cons
- Possible to grow larger account balances than under some other arrangements.
- Administrative costs may be higher than under more basic arrangements.
- Need to test that benefits do not discriminate in favor of the highly compensated employees.
- An excise tax applies if the minimum contribution requirement is not satisfied.

Who contributes
Employer and/or employee contributions.

Contribution limits
The lesser of 25% of compensation or $54,000 (for 2017; $53,000 for 2015 and 2016, subject to cost-of-living adjustments).

Source: https://www.irs.gov/Retirement-Plans/Choosing-a-Retirement-Plan-Money-Purchase-Plan





AZWEB1