Business Banking - Retirement Services
|What it is:||A pension plan for small organizations that allows company contributions to be made to an individual retirement account (IRA) for the benefit of eligible employees.|
|Maximum total plan contribution that the employer may deduct||25% of participant’s pay or $49,000,1 whichever is less.2|
|Maximum annual allocation to participant’s account||25% of participant’s pay or $49,000,1 whichever is less.2|
|Maximum annual participant deferral (cannot exceed 100of pay)||No participant deferral contributions are allowed.|
|Required employer contribution||None; a minimum allocation may be required if a contribution is made and plan is top-heavy.3|
1 The DC annual additions limit is effective for limitation years ending in the calendar year. The dollar limit is increased by the amount of the applicable catch-up contribution.
2 Grandfathered SARSEP rules may differ slightly; please consult IRS Publication 560.
3 A plan is top-heavy if, on the determination date, the total value of the accounts of all key employees is greater than 60% of the total value of the accounts of all employees.
Investment products are not deposits or obligations of, or guaranteed by Lake City Bank or any other bank, are not insured or guaranteed by the FDIC or any governmental agency and are subject to investment risks, including possible loss of principal invested. Past performance is not a guarantee of future results.