Available starting in 1997, the Simple 401k Retirement Plan does not require the complex deferral (ADP) and matching (ACP) testing common under the traditional 401.

These plans are only available to organizations with few than 100 employees.

Retirement plan funding comes from voluntary employee salary deferral.

Employer must match employee contribution dollar-for-dollar up to 3% of compensation but only for all eligible employees who voluntarily elect to participate in plan.

There is no match for those who do not which to be in plan. Alternatively, Employer must contributor 2% of salary of all eligible employees whether they want to be in plan or not.

Employer contributions are not limited to the 15% aggregate rule associated with some other pension plans.

Every W-2 individual employee (including husbands, wives, children) can voluntarily put 100% of income into Simple 401k up to maximum of $6000 each per year.

Effectively, a highly compensated company owner can put up to $12,000 yearly into a Simple 401k, depending on his/her income.

Employer has flexibility regarding length of employment when defining who is eligible for plan. However, eligible employees must include those with one year service, and over 21. Part-time employees can be excluded.

Limited cost turnkey plans offered.

Employee salary reduction is made on a pre-tax basis and excludable from current income tax.

Employer matching contribution are deductible (if made by due date, including extensions, for employer's tax return).

Participants are 100% vested immediately.

Loans are permitted.

If a company has a Simple 401k, no other plans allowed.

Withdrawals from a Simple 401k are subject to a 25% tax penalty during the first two years if under 59 1/2; 10% penalty after two years and under 59 1/2.

Distributions are generally taxed under rules governing IRAs

Participants direct their own investments within different asset classes within a family of mutual funds.

All Mutual Funds, Variable Annuities and Variable Life Insurance policies are offered by prospectus ONLY. For complete information including charges and expenses obtain a prospectus, and read it carefully before you invest. Mutual Fund, Variable Annuity and Variable Life prospectuses are available directly from the issuing companies when product information is requested, and in some cases, they can be downloaded directly on the issuing company's internet website. The tax deferral characteristic associated with variable annuities is not needed when used in an account that is by definition tax deferred (retirement accounts) and according to some sources variable annuities generally have higher fees and internal expenses than mutual funds. Systematic and dollar cost averaging within Mutual Funds, Variable Annuities and Variable Life insurance policies does not assure a profit and does not protect against loss in declining markets. It involves continuous investment in securities regardless of fluctuating prices and the investor should consider his or her financial ability to continue purchases through periods of low price levels. Investing in stocks, bonds, mutual funds and variable annuities does not guarantee a profit. All of these investments can lose money. Stocks, bonds, mutual funds and variable annuities are not FDIC insured.

Moving 401k and other retirement plans from prior employers is a common ongoing occurrence.

Once individuals become aware of the advantages associated with enhanced performance, better and more complete investment choices, unrestricted and cost free exchanges between funds and perhaps even a death benefit to heirs the decision to move frequently makes good economic sense.

Generally, when one leaves the employ of a company with a 401k one has the option to roll their 401k pension plans into the new company's plans, if available, or into a personal IRA or a Rollover IRA.

Frequently, the choice is made to roll into an IRA because of the flexibility and vast array of individual choices available

Once in an IRA, the participant is therefore not relegated to the investment choices offered by the company or not-for-profit organization, nor, is the participant subject to any potential future restrictions imposed by the new employer, if any.

Once in an IRA, the participant is permitted to move the plan for whatever reason to other investments within his/her IRA as desired.

Retirement plans can be readily rolled from mutual funds to variable annuities or from variable annuities to mutual funds. Or from one mutual fund complex to another fund, or from one annuity to another. Sales charges might or might not apply.

There are a number of considerations regarding these rollovers and proper selection of the proper mutual fund or variable annuity funding family is of importance.

All Mutual Funds, Variable Annuities and Variable Life Insurance policies are offered by prospectus ONLY. For complete information including charges and expenses obtain a prospectus, and read it carefully before you invest. Mutual Fund, Variable Annuity and Variable Life prospectuses are available directly from the issuing companies when product information is requested, and in some cases, they can be downloaded directly on the issuing company's internet website. The tax deferral characteristic associated with variable annuities is not needed when used in an account that is by definition tax deferred (retirement accounts) and according to some sources variable annuities generally have higher fees and internal expenses than mutual funds. Systematic and dollar cost averaging within Mutual Funds, Variable Annuities and Variable Life insurance policies does not assure a profit and does not protect against loss in declining markets. It involves continuous investment in securities regardless of fluctuating prices and the investor should consider his or her financial ability to continue purchases through periods of low price levels. Investing in stocks, bonds, mutual funds and variable annuities does not guarantee a profit. All of these investments can lose money. Stocks, bonds, mutual funds and variable annuities are not FDIC insured.