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Retirement Plans

SEP-IRA

More Information | SEP Checklist

Under a SEP, the employer makes contributions to individual SEP-IRAs set up for each eligible employee. A SEP is funded solely by employer contributions, and each employee is always 100% vested in his or her SEP-IRA. Total contributions to each employee’s IRA cannot exceed the lesser of $44,000 for 2006 (subject to cost-of-living adjustments for later years) or 25% of pay.

Verity Investments, Inc. uses a model SEP plan, which can be established using form Form 5305-SEP. Plans can be established as late as the due date, including extensions, of the income tax returns for that year.

Our advisors will work with an employer, or self-employed individual, to establish a SEP-IRA and review suitable funding vehicle options with each participant. Each individual may make their own investment election, and can modify their investment choices within the offerings of the plan custodian selected by the employer.

SIMPLE IRA

More Information | SIMPLE IRA Plan Checklist

A SIMPLE IRA plan is funded with both elective employee salary deferrals and employer contributions. Each employee is immediately 100% vested all contributions to his or her SIMPLE IRA, regardless of source. The elective deferral limit for 2006 is $10,000, with an additional $2,500 catch-up provision if the employee is age 50 or over.

Generally, employers may make either a contribution matching employees’ contributions dollar-for-dollar up to 3% of pay or a 2% non-elective contribution for each eligible employee, regardless of elective deferral participation.

Employers must have fewer than 100 eligible employees to establish a SIMPLE Plan, and cannot maintain any other retirement plan. All employees can be immediately eligible, or eligibility can be limited to employees who received at least $5,000 in compensation during any 2 years prior to the current calendar year and who are reasonably expected to receive at least $5,000 during the current calendar year.

Verity Investments, Inc. offers a model SIMPLE IRA plan document and uses IRS Form 5304-SIMPLE, Savings Incentive Match Plan for Employees of Small Employers (SIMPLE) - Not for Use With a Designated Financial Institution to establish the plan.

Our advisors will work with each eligible employee to make investment elections and participation level elections. We can provide list bill remittances to employers and will allocate all group contributions according to individual elections.

401(k) Plans

More Information | 401(k) Resource Guide | Checklist

Establishing or replacing an existing 401(k) plan involves a series of decisions regarding plan design, administration and funding choices. As both a broker/dealer and investment advisory firm, Verity Investments, Inc. has a wealth of resources to help you compare and choose from among many plan providers.