*Includes IRS Plan Document.
The EZTPA is for owner-only businesses (either no employees or those with part-time employees only), their spouses & family members who earn income from the business as well as anyone with 1099 income. This includes entrepreneurs, sole proprietorships,closely held family businesses, and corporations.
Setting up an EZTPA is easy and our webform takes you through the entire process in a matter of minutes.
You will need the following information:
With our EZTPA, we will help you establish quickly and easily with just a few minutes of your time the legal documents necessary to operate a 401k plan.You are responsible for completing the online webform which will allow us to generate your:
You are responsible for operating and funding your plan per the plan provisions approved by the IRS under the qualified plan document EZTPA will provide.
You are responsible for funding the EZTPA plan with your contribution and investing those contributions through the investment vehicle of your choice. You can use any financial institution of your choosing to establish and maintain the assets of your plan.
You are responsible for tracking all deposits made into either your pre-tax, profit-sharing, or after-tax (Roth) accounts for reporting purposes on year-end tax filings and at the point of distribution.
You are responsible for tracking any qualified rollovers into your EZTPA investments.
You are responsible for tracking any distributions from your EZTPA investments. If you receive a distribution from your account, you or your financial institution is responsible for filing a Form 1099-R to report the distribution to the government.When you request the distribution from your investment company, confirm whether they are going to file the 1099-R or not.
You are responsible for monitoring your plan balance and notifying us when the balance reaches $250,000 at any year-end; should you want us to complete the IRS required Form 5500.
For 2017, you need to setup your plan and sign your adoption agreement by December 31, 2017.
If you are an LLC, LLP, or receive 1099 income you need to make your 2017 employee and employer contributions by April 15th, 2018.
If you are an S-Corp, C-Corp or filing as an incorporated business you need to make your 2017 employee by December 31, 2017 and your employer contributions by your business tax filing deadline.
Under the EZTPA, you are able to do a combination of pre-tax and Roth (after-tax) contributions plus an employer contribution. If you or your client are under age 50, the total amount cannot exceed $53,000 for 2016 and $54,000. If you or your client are over age 50, the limits are $59,000 for 2016 and $60,000 for 2017. Speak with you tax professional about which options is the best for you or your client.
Our EZTPA allows you to invest in stocks, bonds, mutual funds, brokerage accounts as well as real estate, private equity, hedge funds, gold, and even art work.
The EZTPA plan allows for two types of loans: general obligation & primary residency loans. In both cases, the maximum amount permitted is the lesser of 50% of your vested account balance or $50,000. The minimum amout allowed is $500.
Our EZTPA plan allows for emergency withdrawal due to financial hardship. A 10% early withdrawal penalty would be applied by the IRS.
Once your plan exceeds $250,000, you will need to let the IRS know by filing a Form 5500. EZTPA will remind you each year to check if you need to file this form. If you do, we can prepare your Form 5500 for you.
At some point, you will need to shut down your EZTPA plan. You’ve retired, you’ve sold the company, you’ve decided to go with another provider; there are any number of reasons.In any instance, all we require is a 90-day written termination notice (email is preferred) before your next annual billing. Absent of such notice, you will be subject to the full annual maintenance fee for the following billing period.If you are terminating your plan (meaning you aren’t choosing a new vendor) remember that the federal government mandates that all distributions from a trust are reported on a Form 1099R and that a final Form 5500 is prepared.