Focal Point Financial: Simple Plans Comparison

Comparison Chart

Common ?'s	Non ERISA 403(b)	SEP (IRA)	Simple Plan (IRA)	Simple 401-k	401-a & k
Who can do this?	Only 501(c)(3) Non Profit Corporations & Public Schools	All businesses	< 100 employees 1/1/97	< 100 employees 1/1/97	All businesses
Whose $	Employee only (Non-ERISA) 20% max. to $10,500*	Employer only max. 15% up to $25,500***goes to 25% in 2002 to $40,000 max.	3% match or 2% all up to $6,500** E'ee (no other plan allowed)	3% match or 2% all up to $6500** E'ee (no other plan allowed)	E'er max. 25% E'ee up to 10,500 Up to $35,000*both
Employee Eligibility max. Who is in?	All employees FT & PT, no wait	Any part of 3 of past 5 plan yrs., age 21, exclusions	Earn $5,000 x 2 yrs. expect $5,000 current year	12 months of service	1,000 hours / year x 1 or 2 years (Possible vesting)
Funding (Title)	403(b) Trust	IRA (special)	IRA (special)	Qualified Trust Employer controls	Qualified Trust Employer controls
Testing?	No	No	No	No	Yes
IRS 5500 - DOL Filing	No	No	No	Yes	Yes
Employee Loans	Allowable	No	No	Allowable	Allowable
Early Withdrawal Penalties	10% or 72(t)	10% or 72 (t)	< 2 yrs. @ 25% > 2 yrs. @ 10% or 72(t)	10% or 72(t)	10% or 72(t)
IRS Withholding	20%	None	None	20%	20%
Advantages	Extremely flexible	Flexible	Ease	Ease, Control & Loans	More options
Disadvantages	Minimal	Includes all	Mandatory, Ltd.	Mandatory, Ltd., 5500 filing	TPA costs, $

*** The SEP and 401 limits go up to $40,000 in 2002 and are adjusted annually for inflation thereafter.

401(k) and 403 (b) limits
*	In 2002 - $11,000 + $1000 if 50 or older
	In 2003 - $12,000 + $2000 if 50 or older
	In 2004 - $13,000 + $3000 if 50 or older
	In 2005 - $14,000 + $4000 if 50 or older
	In 2006 - $15,000 + $5000 if 50 or older

Simple limits
**	In 2002 - $7,000 + $500 if 50 or older
	In 2003 - $8,000 + $1000 if 50 or older
	In 2004 - $9,000 + $1500 if 50 or older
	In 2005 - $10,000 + $2000 if 50 or older
	In 2006 - $10,000 + $2500 if 50 or older

Our clients are our business.

Focal Point Financial Services
2214-5th St., Suite 1
White Bear Lake, MN, 55110
(651) 426-7375 or 1-888-426-7373
Fax (651) 426-6004

dale@focalpointfinancial.com

NOTE: Dale Hedstrand is a registered principal associated with AIG Financial Advisors, Inc., Member NASD/SIPC. Before proceeding further, please be advised that Dale Hedstrand is licensed to discuss with or offer investment and financial services and products only to residents of AL, AZ, CA, FL, ID, MD, MI, MN, MO, NH, NM, ND, OH, OK, OR, SC, SD, UT, VA, WA, WI, WY. Securities related services may not be provided to individuals residing in any state not listed above. The information offered is for informative purposes only. None of this information is to be construed as an offer to buy or sell securities referred to within or otherwise. Neither Dale Hedstrand nor AIG Financial Advisors, Inc makes any guarantee as to the accuracy or completeness of this information.

This information has been prepared from sources and data believed to be reliable but is not guaranteed by NASD/SIPC or AIG Financial Advisors, Inc., nor is any representation made herein as to its accuracy or completeness. This listing is provided for information purposes only and is not to be construed as an offer to buy or sell any securities mentioned herein.

We do not endorse any business or product you may find as a result of these links. The links were chosen as a sample of what the Internet has to offer. We caution you: do not enter into any agreement or purchase anything via the Internet until you and your advisors are satisfied that you are getting what you are paying for.