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Compare Union Bank and UnionBanc Investment Services Retirement Plans

Feature Plan SEP (Simplified Employee Pension) SIMPLE IRA 401(k) Plans Brokerage IRA###DISCLAIMER:2_0 Investments 3###
Type of business Sole proprietorships, partnerships, corporations, tax-exempt organizations Sole proprietorships, partnerships, corporations, tax-exempt organizations Sole proprietorships, partnerships, corporations For employees or business owners
Number of employees Unlimited Up to 100 Unlimited Individual account owner
Main advantage Make contributions toward your individual IRAs for your employees' retirements, without the cost and paperwork of administering a more-complex plan Comparable to a 401(k), with less-complicated paperwork and administration
  • Helps employees save and prepare for retirement using pre-tax contributions
  • Employees also can benefit from a company match or profit-sharing contribution according to plan terms
Avoid taxes and withdrawal penalties imposed on retirement plan distributions, continue tax-deferred growth of savings, manage asset allocation, and take advantage of a wider investment selection
Who contributes Employer Employee and employer Employee and/or employer Employee
Contributor's options Employer can choose to contribute as little or as much as desired Employees may choose to contribute a specified percentage of their income, while employer contributions are mandatory Two options:
  • Employee chooses amounts
  • Employer can make additional matching or profit-sharing contributions
Consolidate other existing retirement accounts, including Traditional IRAs and money from other employer-sponsored plans, into one IRA for ease of management
Employee coverage Employers must include employees who meet all of the following requirements or set more-liberal requirements:
  • Age 21 or older
  • Employed during any three of the preceding five years
  • Earn at least $550 in 2009 and $550 in 2010 (IRS adjusts annually)
Employers may exclude employees covered under a collective bargaining agreement and nonresident aliens
Eligible employees are those who have:
  • Received compensation of at least $5,000 in any two preceding years
  • Those who reasonably expect to receive at least $5,000 in the current calendar year
The employer may waive or set less-restrictive eligibility requirements and may exclude certain union employees or nonresident aliens

Employer must not maintain another employer-sponsored retirement plan
Must be available to all eligible employees N/A
Maximum annual employer contributions 2010

Lesser of 25% of first $245,000 of compensation or $49,000, whichever is less
Two options:
  • 100% matching, up to 3% of employee compensation
  • Non-elective, 2% of employee compensation
Employer contributions in the aggregate are limited to 25% of compensation

Contributions to an individual participant may not generally exceed $49,000 in 2010 (reduced by his/her salary deferral contributions)
N/A
Maximum annual employee contributions N/A 2010
  • $11,500 for under age 50
  • $14,000 for age 50 and older
2010
  • $16,500 for under age 50
  • $5,000 additional catch-up for age 50 and older
No contributions
Investment options Choose from:
  • Fixed-rate time deposit
  • Variable-rate time deposit
  • Brokerage###DISCLAIMER:2_0 Investments 3###
  • MoneyMarket Savings
Choose from:
  • Fixed-rate time deposit
  • Variable-rate time deposit
  • Brokerage###DISCLAIMER:2_0 Investments 3###
  • MoneyMarket Savings
Choose from:

A variety of no-load mutual funds from nationally recognized fund families
Invest in:

Traditional assets, such as time deposits, stocks, bonds,###DISCLAIMER:2_0 Bonds### and mutual funds
Employee vesting 100%, immediately 100%, immediately Two schedules:
  • Employee contributions: 100% immediately
  • Employer contributions may vest according to plan terms
N/A
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