Entrust Account Guide

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Account Guide

Individual Retirement Accounts

Traditional and Roth IRAs

Small Business Retirement Accounts

SEP and SIMPLE IRAs

Individual(k) Account

Educational Savings Account

ESA

Health Savings Account

HSA

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Funding an Entrust Account

2014 and 2015 Plan Comparison Chart

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2014-2015 Entrust Account Guide

Helping You Direct Your Future ™

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Individual

Retirement Accounts

Traditional and Roth IRAs

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Traditional IRA

What is a Traditional IRA?

A Traditional IRA is an Individual Retirement Arrangement, or more commonly known as an Individual Retirement Account, which allows pre-tax dollars along with any interest, capital gains, or dividend income to grow tax deferred until withdrawal. With an Entrust self-directed Traditional IRA, an individual may have the ability to direct their funds towards a wide variety of investments.

Traditional IRA Eligibility Requirements

An individual can open and make contributions to an IRA if both of the following requirements are met:

◆ Taxable compensation has been received during the year

◆ 70 ½ years of age has not been reached by the end of the year

If an individual and their spouse have received compensation during the year and have not reached 70 ½ years of age, an IRA may be established for each. However, if filing a joint tax return, only one is required to receive compensation and is allowed to contribute on behalf of their spouse.

Traditional IRA Contributions for 2015

If an individual has not reached 50 years of age by the end of the year, the maximum contribution that can be made is the lesser of $5,500 or the amount of their taxable compensation.

If an individual has reached 50 years of age or older by the end of the year, the maximum contribution that can be made is the lesser of $6,500 or the amount of their taxable compensation. Due to the Economic Growth and Tax Relief Reconciliation Act of 2001, a $1,000 catch-up provision was provided in an effort to allow additional retirement savings.

How to determine if an Entrust self-directed Traditional IRA is the right retirement plan for you:

◆ You want tax-deferred earnings

◆ You want your contribution to be deductible

◆ Your income exceeds the income limits for contributing a Roth IRA^*

◆ Your current Traditional IRA restricts your investment options

◆ You have funds in an old 401(k) that you want invest in alternative assets

*See IRA Comparison for 2015

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Roth IRA

What is a Roth IRA?

A Roth IRA is an individual retirement account that is funded with post-tax dollars, but all earnings, including interest, capital gains, and dividend income, grow tax free. You pay income taxes on the initial contribution in the year it is made, but you can withdraw the earnings tax-free as long as certain requirements are met.^* In addition, you can withdraw your direct contributions at any time. You can begin withdrawing earnings at age 59 ½, but you are not required to take distributions at any age. You can have both a Roth IRA and an employer-sponsored plan, as long as you meet the compensation requirements.

What are the eligibility requirements?

You can make contributions to a Roth IRA if you have taxable compensation for the year, and your modified adjusted gross income (MAGI) does not exceed the specified limits.

If an individual and their spouse have received compensation during the year, both can contribute to their own IRA. However, if filing a joint tax return, only one individual is required to have compensation.

Contribute to a Roth for a Tax-Free Future

Contributions to a Roth IRA are not tax deductible, but the gains accumulate tax free. If you are under 50 years old, the maximum allowable contribution for 2015 is $5,500. If you are 50 or over, the maximum is $6,500.

If your current Roth IRA does not allow self-direction, you can easily transfer funds to an Entrust self-directed Roth IRA. You can also convert a Traditional IRA or a 401(k) with a former employer to a Roth. Although this is a taxable event, it allows you to fund your Roth IRA with more than just your annual contribution, and provides the benefit that your future earnings will grow tax free.

With a Roth IRA, there is no age limit regarding contributions, and you are not required to take distributions. In most cases, you can withdraw the principal amounts invested without any tax liability.

How to determine if an Entrust self-directed Roth IRA is the right retirement plan for you:

◆ You want tax-free earnings and no taxation on withdrawals

◆ You want to continue saving for your retirement beyond age 70 ½

◆ You do not want to be required to take distributions

◆ Your income does not exceed the income limits for contributing^*

The amount that you can contribute to a Roth IRA is based on your MAGI. However, as of 2010, there is no income limit if you are converting a traditional IRA or 401(k) with a former employer to a Roth.

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Start Saving Today

It’s never been easier and more convenient to establish an IRA with Entrust.

1. Call your local Entrust office and request an IRA application or visit TheEntrustGroup.com/Forms.

2. Complete and return your signed application to your local Entrust office, or email, or fax it to our corporate office.

3. Fund your IRA by making a contribution or transfer/rollover an existing IRA or 401(k).

4. Choose your investment. For investment ideas, the Entrust Learning Center has a complete library of articles, case studies, news, and ideas on a number of different investment strategies.

If you are unaware of the power of self-direction, please take advantage of free, live and pre-recorded events and webinars offered through any one of our nationwide offices.

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IRA Comparison for 2015

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Age Eligibility

Income Limits For Full Contribution

Income Limits For Partial Deductibility (Traditional)/ Contribution (Roth)

Contribution Limits

Catch-Up Contribution Limit Withdrawal Taxation

Contribution Age Limit

Required Minimum Distributions (RMDs)

Up to 70 ½ with compensation from employment

None

Single: $61,000 - $71,000 Joint: $98,000 - $118,000

$5,500 or 100% of compensation, whichever is less

Additional $1,000 if at least age 50

Pre-tax contributions and earnings are taxable at time of distribution

The year individual turns 70 ½

Begin at age 70 ½

Any

Single: Up to $116,000 Joint: Up to $183,000

Single: $116,000 - $131,000 Joint: $183,000 - $193,000

$5,500 or 100% of compensation, whichever is less

Additional $1,000 if at least age 50

Withdrawals are tax-free.

Earnings are tax-free after 5-year requirement and after account holder meets one of the following: age 59½, death, disability,

qualified first-time home purchase.

None

Traditional Roth

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Small Business

Retirement Accounts

SEP and SIMPLE IRAs

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SIMPLE IRA

What is a SIMPLE IRA?

A SIMPLE (Savings Incentive Match Plan for Employees) is an IRA-based plan that gives employers an easy way to make contributions toward their employees’ and their own retirement. A SIMPLE IRA is for self-employed individuals or small businesses, generally with 100 employees or fewer.

A SIMPLE IRA is a tax-deferred, salary-reduction plan. Employees can choose to make contributions up to the allowable limit. The employer must contribute to the plan. The employer can choose either to match the employee’s contribution dollar for dollar up to 3% of the employee’s compensation, or just contribute 2% of compensation with no matching. To be eligible, the employee must have made at least $5,000 in the preceding year. All contributions are made directly to an IRA that has been established for each employee.

Contributions to a SIMPLE IRA are not taxed. The contribution amount is excluded from your gross income. Funds are taxed when they are withdrawn.

By establishing a self-directed SIMPLE IRA, your retirement funds can be invested in real estate, notes, precious metals, private placements, and more.

Consider an Entrust self-directed SIMPLE IRA if:

◆ You have a company with fewer than 100 employees.

◆ You are looking for a plan with low start-up and administrative costs.

◆ You want a plan that provides you and your employees a simplified way to contribute toward retirement.

◆ You want a plan that can help you attract and retain quality employees while reducing business taxes.

◆ You would like flexibility in how much to contribute to the employees’ plan.

◆ You do not sponsor any other retirement plan. SIMPLE IRA Rules

The deadline for setting up a SIMPLE IRA is October 1 of the year that the plan takes effect. When the plan is established, employees make contributions for the calendar year. In 2015, your maximum contribution amount is not to exceed $12,500. The 2015 SIMPLE IRA contribution deadline for employees is 12/31/2015.

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Direct Your Future

SEP IRA

What is a SEP IRA?

A SEP (Simplified Employee Pension) provides an easy, flexible, low-cost retirement option if you are self-

employed or a partner or owner of a corporation. A SEP retirement account is a Traditional IRA that allows you to make contributions for yourself and your employees.

A SEP IRA does not have the start-up and operating costs of a conventional employer plan, nor do you have to contribute the same amount each year. You can make tax-deductible contributions of up to 25% of each employee’s compensation (if you’re self-employed, you’re considered an employee). And with a self-directed SEP IRA, you have the added benefit of choosing how to invest your funds.

Consider a self-directed SEP IRA if:

◆ You are a sole proprietor, independent contractor, self-employed, partner, corporation, or S corporation.

◆ You don’t want to be locked into making contributions every year.

◆ You want a plan with low administrative costs.

◆ You want a wider range of investment choices, including real estate, notes, private placements, and LLCs.

◆ If you already have a SEP IRA but it doesn’t allow self-direction, you can transfer all or part of the funds to an Entrust self-directed SEP IRA without penalty.

SEP IRA Rules

◆ You can choose what percentage to contribute in any given year — up to 25% of earned income — as long as the percentage is the same for each employee.

◆ The maximum compensation amount that can be used for calculating contributions is $265,000 for 2015, with your contribution not to exceed $53,000.

◆ As an employer, you can deduct the amounts contributed for yourself and your employees.

◆ Each employee has complete control over the contributions from the employer

◆ For a given tax year, you can make your contribution up to the due date of your income tax return, including extensions.

You cannot open a SEP Roth IRA, but can convert your SEP IRA funds to a Roth if you want to pay the taxes now rather than deferring them.

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What are the eligibility requirements?

An eligible employee must meet the following requirements:

◆ Reached age 21

◆ Have worked for the employer in at least 3 of the last 5 years

◆ Received at least $600 in compensation

◆ An employer can also impose less restrictive eligibility requirements. You can establish eligibility requirements by completing an IRS 5305-SEP form.

An employer can exclude employees from coverage based on the following:

◆ Employees covered by a union agreement and whose retirement benefits were bargained for in good faith by the employees union and the employer.

◆ Non-resident alien employees who have received no U.S. source of wages, salaries, or other personal services compensation by the employer.

Start Saving Today

It’s never been easier and more convenient to establish an account with Entrust.

1. Call your local Entrust office and request an IRA application or visit TheEntrustGroup.com/Forms.

3. Fund your new account by making a contribution or transfer/rollover an existing IRA or 401(k).

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SEP and SIMPLE Comparison for 2015

Eligibility

Tax Benefits

Establishing a Plan

Responsibilities

Contributions

Required Minimum Distributions (RMDs)

Be either a sole proprietor, business owner, in a partnership, or earn self- employment income by providing service. In addition, must:

◆ Have reached age 21

◆ Have worked for the employer in at least 3 of the last 5 years

◆ Have received at least $600 in compensation

Tax-deductible contributions with tax-deferred growth.

Due date (including extensions) of your business income tax return for the year you want to establish the plan.

Employee must open an individual SEP IRA account.

Must be made by employer but can vary each year between 0%-25% of compensation, with a maximum of

$53,000, and each eligible employee must receive the same percentage

Begin at age 70 ½. Early withdrawal penalty of 10% if under age 59 ½ (unless exception applies).

Generally, have 100 or fewer employees who earned at least $5,000 in the preceding year. Cannot sponsor any other retirement plan.

Employer contributions are deductible as business expense. Tax-deferred growth, pre-tax contributions.

October 1 of the year that the plan takes effect.

Administrator must meet certain annual employee notifications.

Employer: Mandatory 3% match, or 2% non-elective contribution. Employee: Up to 100% of compensation, up to $12,500 ($15,500 if age 50 or older) per year.

Begin at age 70 ½. Early withdrawal penalty of 10% (25% if in first two years of plan participation) if under age 59 ½ (unless exception applies)

SEP SIMPLE

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Individual 401(k) Account

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Save more and expand your investment options with a self-directed account.

An Entrust self-directed Individual 401(k) Retirement Account gives you the maximum flexibility and financial ability in investing for your future. The Individual 401(k) plan is similar to a 401(k) plan, but for businesses that employ only the owners, their spouses, and/or partners.

An Individual 401(k) plan has two contribution types available:

◆ Employee: Salary deferral, based on earned income, up to the allowed limit

◆ Employer: Profit-sharing contribution, maximum 25% of compensation, up to the allowed limit

With Entrust, you can establish the salary deferral component as either a traditional or designated Roth deferral, or both.

Consider an Individual 401(k) at The Entrust Group if:

◆ You are a sole proprietor with no employees other than your spouse or partners.

◆ You are looking for the largest potential contribution for a business.

◆ You want the flexibility to invest beyond stocks and mutual funds.

◆ You want the capability of taking a loan from your plan account balance.

Key Advantages

Larger Contribution Amounts

The employee salary deferral can be up to a maximum of $18,000 as the individual limit for 2015 with an additional $6,000 for persons age 50 or over.

Large Tax Deductions

The employer portion can be up to the smaller of 25% of the employee compensation or $53,000 for 2015. The maximum compensation amount that can be used for calculating the contribution for each employee is

$260,000 for 2015. This contribution amount may be used by the employer as a tax deduction. Loans

You can take a loan of up to 50% of your balance in the account, provided the loan is repaid within five years using a reasonable interest rate.

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◆ Contribute cash or property that you own.

• If you are a “C” Corporation, you may contribute corporate stock, property, or cash and deduct the contributions within the contribution limits.

• The value of your contributions cannot exceed the current year contribution limits.

• These techniques allow you to move cash into your company from your plan when purchasing employee stock.

◆ Contribute the maximum amount to your plan.

• Since Individual 401(k) plans are designed for businesses with no employees, the plan is not subject to additional compliance burdens such as nondiscrimination tests.

• A spouse employed by the business may also contribute to the plan.

◆ Manage your assets with a checkbook.

• As the trustee of your plan, you control the investments and have signing authority over the plan’s checkbook.

• The plan investment–including the checking account–must be titled under the plan name.

◆ Take personal loans from your plan account balance.

• Borrow up to 50% of your plan assets, as long as it does not exceed $50,000.

• The loan must be paid back within five years (unless used for a primary home purchase).

• The loan must be paid back by making at least quarterly payments using a reasonable interest rate (e.g. 1% above prime).

◆ Invest in precious metals, mutual funds, stocks and bonds.

• Establish a precious metals Individual 401(k) account and invest in physical metals such as gold, silver, platinum and palladium.

• Mutual funds from numerous fund families are available with no trade transaction fees.

Direct Your Future™

Investment Options

With The Entrust Group self-directed Individual 401(k) recordkeeping platform, you may invest in alternative investments such as real estate, notes, rental property and mortgages to name a few. Keep in mind that additional taxes may apply with certain investments. With your Individual 401(k) plan you can also:

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What’s Best for Me?

You should consult with your financial and legal representative before entering into any investment.

Remember, The Entrust Group does not recommend or endorse any investment. Our service offering comes with three options:

Option 1:

Document Sponsorship Only. As a self-trusted plan, you take control of where the plan assets are invested. Option 2:

Document Sponsorship and Recordkeeping. Not only will we provide the document to establish the plan, we will also recordkeep the investments of your plan.

Option 3:

Investment Only Recordkeeping. We know that you may already use a plan document from a different provider. You may use us as a recordkeeper of your plan investments.

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Coverdell Education

Savings Account

ESA

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Educational Savings Account

What is a Coverdell ESA?

A Coverdell Education Savings Account (ESA) is a way to save for your child’s education on a tax-free basis. Contributions to an ESA are not tax deductible, but the earnings grow tax free. And by opening a self-directed ESA, you have the ability to grow the account faster than through traditional investments.

With an ESA, you can:

◆ Contribute up to $2,000 annually for each beneficiary. A beneficiary must be under age 18, or a special needs beneficiary.*

◆ Use the funds to pay for any educational institution, including elementary, secondary, college, or vocational training, whether public or private.

◆ Pay for educational expenses, such as uniforms, computers, and supplies.

◆ Choose whether to contribute in any given year — you are not required to make deposits every year.

◆ Transfer the funds to any family member under the age of 30.

Although the contribution limit per beneficiary is $2,000 per year, if you start at birth, that amount can add up by the time the child turns 18, especially if you are getting a good return. Remember distributions are not taxed if used for educational purposes.

Permanent Changes from 2013

The American Taxpayer Relief Act of 2012 (H.R. 8) was passed by the United States Congress on January 1, 2013, and was signed into law by President Barack Obama the next day. All Coverdell education savings account (ESA) provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) that were set to expire at the end of 2012 are now made permanent.

*Regulations defining a “special needs beneficiary” have not been released by the Internal Revenue Service (IRS). Assume an individual who is age 18 or older and eligible for Supplemental Security Income (SSI) due to blindness or disability is a “special needs beneficiary.” Visit https://secure.ssa.gov/poms.nsf/lnx/0501130460 for more information.

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Start Saving Today

It’s never been easier and more convenient to establish an IRA with Entrust.

1. Call your local Entrust office and request an ESA application or visit TheEntrustGroup.com/Forms.

3. Fund your ESA by making a contribution.

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Health Savings Account

HSA

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What makes a HDHP?

A high deductible health plan (HDHP) has lower monthly premiums than traditional health plans. A plan qualifies as a HDHP if it meets the following criteria:

Single Coverage Family Coverage Minimum annual

deductible*

$1,250 (2014)

$1,250 (2015)

$2,500 (2014)

$2,600 (2015) Maximum annual

deductible and other out-of-pocket expenses*

$6,350 (2014)

$6,450 (2015)

$12,700 (2014)

$12,900 (2015)

*These items may be increased based on cost-of-living adjustments. Talk with a health care insurance specialist

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Health Savings Account

What is an HSA?

A health savings account is a tax-advantaged medical savings account for people who are enrolled in a high-deductible health plan (HDHP). You can use the funds for medical expenses, such as prescriptions, eye care, dental, and some over-the-counter medications. The funds contributed to your HSA are tax-deductible, reducing your taxable income.

An advantage of an HSA is that you don’t have to use your contribution in a particular year. Instead, the funds continue to accumulate. You do not pay taxes on the earnings, and withdrawals are tax-free if used for qualified medical expenses. You also do not lose the funds if you change health plans. After age 65, you can withdraw the funds penalty-free for any purposes.

Qualifying for an HSA

To qualify for an HSA, you must meet the following requirements:

◆ Be enrolled in a high-deductible health plan (HDHP)

◆ Have no other health coverage

◆ Not enrolled in Medicare

◆ Not claimed as a dependent on someone else’s tax return

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HSAs Maximize the Benefits of an HDHP

Once you have selected a qualified HDHP, you can open a self-directed HSA with Entrust. A self-directed HSA not only gives you control over your medical expenses, but also allows you to control how your money is invested. Self-direction allows you access to a larger range of investment opportunities than those offered by traditional HSA account administrators. In addition to CDs and mutual funds, with a self-directed HSA, you can invest in real estate, notes, precious metals, and more—all permitted by the IRS.

Start Saving Today

Take control of your health and retirement by starting now. It’s never been easier and more convenient to establish an HSA with Entrust.

1. Call your local Entrust office and request an HSA application. To qualify, you must have an HDHP. If you’re not sure whether your current health plan qualifies, your local Entrust representative can assist you.

2. Complete and return your signed HSA application to your local Entrust office. 3. Fund your HSA by making a contribution or rolling over an existing HSA or FSA.

Continue to Grow

Each year that you choose to make a contribution to your self-directed HSA, the funds can be invested in assets that you choose. Income generated from the investment will return to the HSA and can grow tax-free if used for health care before the age of 65. After age 65, you can take money out for any reason at your current tax rate, without penalty.

Annual HSA Contributions

Contributions are adjusted annually for cost-of-living increases. Tax Year

Single Coverage Maximum Contribution

Family Coverage Maximum Contribution

Catch-Up Contribution (age 55 or over)

2014 $3,300 $6,550 $1,000

2015 $3,350 $6,650 $1,000

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Transfer

You can transfer funds from an existing IRA at another custodian directly to Entrust. If you would like to transfer funds from more than one IRA, fill out a separate form for each account. Each transfer form must be accompanied with a copy of your current custodian’s IRA statement.

Form Required: Transfer Form

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Contribute

You can contribute up to the maximum amount allowed by the IRS. A contribution may be made via check, wire, or ACH.

Form Required: Deposit Coupon

Rollover

You can take a distribution from your previous IRA custodian. This means

requesting the funds from the account be paid directly to you. You have 60 days from the time you take the distribution to send, or rollover, the funds to Entrust. If you do not complete the rollover within 60 days, there will be taxes and penalties imposed by the IRS.

Form Required: Rollover/Direct Rollover Certification Form

Funding Your Entrust Account

You have options when it comes to funding your Entrust self-directed retirement account. Once you’ve decided the option that’s best for you, visit www.TheEntrustGroup.com/Forms to get started.

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2014 Self-Directed Plan Comparison

Any adult can establish a Coverdell ESA for any child under the age of 18. Do not have to be related to the child. Age exceptions apply for special needs beneficiaries.

Any size business with employees who earned at least $5,000 in the preceding year. Cannot sponsor any other retirement plan. Any age with earned

income.

Direct Your Future ™

Eligibility Up to age 70 ½ with earned income.

Traditional Roth

Be either a sole proprietor, business owner, in a partnership, or earn self-employment income by providing service. In addition, must:

◆ Have reached age 21

◆ Have worked for

employer in at least 3 of the last 5 years

◆ Have received at least $550 in compensation

You are a sole proprietor with no employees other than your spouse or partners.

SEP SIMPLE Individual(k)

◆ Must be enrolled in a high-deductible health plan.

◆ Have no other health insurance.

◆ Not enrolled in Medicare.

◆ Not claimed as a dependent on someone’s tax return.

ESA HSA

$5,500 or 100% of compensation, whichever is less. Catch-up if age 50 or older: Additional $1,000. Contributions

and Limits

Characteristics and Highlights

$5,500 or 100% of compensation, whichever is less. Catch-up if age 50 or older: Additional $1,000.

Must be made by employer but can vary each year between 0%- 25% of compensation, with a maximum of

$51,000, and each eligible employee must receive the same percentage.

Employer: Mandatory 3% match, or 2% non- elective contribution. Employee: Up to 100% of compensation, up to

$12,000 ($14,500 if age 50 or older) per year.

Employer: Up to 25% of compensation. The maximum compensation amount that can be used for 2013 is $255,000. Employee: Up to 100% of compensation, up to the maximum annual contribution limit. Elective salary deferral limit is $17,500 ($23,000 if age 50 or older).

$2,000 per year Single: $3,300 Family: $6,550

Catch-up if age 55 or over: Additional $1,000.

◆ Tax deductible contributions.

◆ Tax-deferred earnings.

◆ Pay taxes when you take distributions.

◆ Required minimum distributions begin at age 70 ½.

◆ Tax-free earnings.

◆ Pay taxes now, pay no taxes on withdrawals.

◆ Contributions may be made after age 70 ½.

◆ No required minimum distributions.

◆ Any size business.

◆ Employer contributions are discretionary and tax-deductible.

◆ Any size business (generally with 100 or fewer employees).

◆ Elective employee salary deferral and employer matching.

◆ Designed for sole proprietors to have the same benefits of a 401(k).

◆ Plan can only cover owners and spouses.

◆ Total combined annual contribution limit of $51,000.

◆ Use the funds to pay for any educational

institution or expenses.

◆ Not required to contribute yearly.

◆ Funds can be transferred to any family member under the age of 30.

◆ Don’t have to use your contribution in a particular year - funds continue to accumulate.

◆ Do not pay taxes on the earnings.

◆ Withdrawals are tax- free if used for qualified medical expenses.

◆ You also do not lose the funds if you change health plans.

◆ After age 65, you can withdraw the funds penalty-free for any

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2015 Self-Directed Plan Comparison

Any adult can establish a Coverdell ESA for any child below the age of 18. Do not have to be related to the child. Age exceptions apply for special needs beneficiaries.

Any business with fewer than 100 employees who earned at least $5,000 in the preceding year. Cannot contribute to any other retirement plan in the same calendar year. Any earned income

within limits.

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Eligibility Up to the year prior to attaing age 70 ½. Must have earned income.

Traditional Roth

Employer eligibility to establish plan: Any business, sole proprietor, partnership, or corporation. Employee eligibility to participate:

◆ Have reached age 21.

◆ Have worked for employer in at least 3 of the last 5 years.

◆ Have received at least $600 in compensation.

Any business with no employees other than your spouse or other owners.

SEP SIMPLE Individual(k)

◆ Must be enrolled in a high-deductible health plan.

◆ Not covered by another health insurance.

◆ Not enrolled in Medicare.

◆ Not claimed as a dependent on someone’s tax return.

ESA HSA

$5,500 or 100% of compensation, whichever is less. Reduced by any contribution to a Roth IRA.

Catch-up if age 50 or older: Additional $1,000. Contributions

and Limits

Characteristics and Highlights

$5,500 or 100% of compensation, whichever is less. Reduced by any contribution to a Traditional IRA. Catch-up if age 50 or older: Additional $1,000.

Employer: Smaller of 25% of compensation or

$53,000. The maximum

compensation amount that can be used to calculate contribution for 2015 is $260,000.

Employer: Mandatory 3% match, or 2% non- elective contribution. Employee: Deferral limit of $12,500 ($15,500 if age 50 or older for the calendar year).

Employer: Smaller of 25% of compensation or

$53,000. The maximum compensation amount that can be used for 2015 is $260,000.

Employee: Deferral maximum of $18,000 plus an additional $6,000 for individuals age 50 and older.

$2,000 per year Single: $3,350. Family: $6,650.

Catch-up if age 55 or over: Additional $1,000.

◆ Potential tax-deductible contributions.

◆ Pay taxes when you take distributions on taxable amounts.

◆ Pay taxes now, pay no taxes on withdrawals when qualified status is attained.

◆ Contributions may be made after age 70 ½.

◆ No required minimum distributions.

◆ Any size of business.

◆ Employer contributions are discretionary and tax-deductible.

◆ Any business with 100 or fewer employees in the preceding year.

◆ Elective employee salary deferral and employer matching.

◆ Designed for businesses with no eligible

employees. Has the same benefits of a 401(k).

◆ Plan can only cover owners and spouses.

◆ Total employee deferral employer contributions may not exceed $53,000. Additional employee deferrals of $6,000 for individuals 50 and older.

◆ Use the funds to pay for any educational

institution or expenses.

◆ Not required to contribute yearly.

◆ Funds can be

transferred to any eligible family member below the age of 30.

◆ Don’t have to use your contribution in a particular year - funds continue to accumulate.

◆ Earnings grow tax- deferred.

◆ Withdrawals are tax- free if used for qualified medical expenses.

◆ You do not lose

the funds if you change health plans.

◆ At age 65, you can