Solutions for businesses of all sizes
Since the inception of 401(k) plans, PutnamInvestments has been a leader in the businessof retirement. We manage retirement assets forsome of America’s most successful companies,helping thousands of plan sponsors and nancialadvisors design plans that make saving aseortless as possible.We recognize that there is no one-size-ts-allretirement plan option.Putnam oers a comprehensive selection ofplans and investment management optionsfor businesses of all sizes. To determine whichare best for your business, use the followingquestionnaire and plan comparison grid,and work with your plan’s nancial advisor.We look forward to helping you design a planto meet your needs.
SEP IRASIMPLE IRA
Key benet
Easy to set up and maintain.Salary reduction contribution plan with littleadministrative paperwork.
Eligibility
Any employer.Any employer with 100 or fewer employees that doesnot currently maintain another retirement plan.
Plan documentsneeded
Set up plan using either IRS Form 5305-SEP or thePutnam prototype SEP agreement.Set up plan by completing IRS Form 5304-SIMPLE.
Contributionsto the plan
Employer contributions only. Prior year contributionsthrough tax ling deadline, plus extensions. Roth 401(k)after-tax contributions not available.Employee salary reduction and contributions andemployer contributions. Roth 401(k) after-taxcontributions not available.
Maximum annualcontribution
25% of compensation or a maximum of $49,000(for 2011). Maximum compensation on which 2011contribution can be based is $245,000. Self-employedindividuals making “employer” contributions on theirown behalf are generally limited to a deductible amountthat is the lesser of 20% of net earnings after allowabledeductions, or $49,000.Employee: $11,500 in 2011 and thereafter. Additionalcontributions can be made by participants age 50 andover ($2,500 in 2011).Employer: Employer must contribute matchingcontributions equal to 100% of rst 3% of electivedeferrals or nonelective contribution equal to 2% ofcompensation not in excess of $245,000 (for 2011).
Contributionoptions
Employer decides whether to make contributions foreach year.Employee can elect how much to contribute frompay. Employer must make matching or nonelectivecontributions.
Maximumemployee coveragerequirements
Must be oered to all employees who meet minimumage, service, and pay requirements. More liberalstandards may be adopted by the employer.Must be oered to all employees who meet minimumcompensation requirements. More liberal standardsmay be adopted by the employer.
Withdrawals,loans, anddistributions
Withdrawals permitted at any time subject to federalincome taxes; early withdrawals subject to tax andpotential penalty. No loans permitted.Withdrawals permitted at any time subject to federalincome taxes; early withdrawals are subject to tax andpotential penalty. No loans permitted.
Vesting
Contributions are immediately 100% vested.Employer and employee contributions are immediately100% vested.
Investments
Full range of Putnam funds, including Asset Allocationfunds, RetirementReady® target-date funds, andAbsolute Return funds.Full range of Putnam funds, including Asset Allocationfunds, RetirementReady® target-date funds, andAbsolute Return funds.
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