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RETIREMENT PLAN ILLUSTRATION CALCULATOR


Gary Lesser
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File Updated on November 12, 2008.

Note: In this version, the year in which the plan year begins and ends must be entered. For more information or a tutorial, please call me (317) 254-0385, during regular business hours

The attached file contains the full retail version of QP-SEP Illustrator Software and More!

After installing the program, retrieve (with ALT+G) the "Unusual" client file in KEO-SAR (see icons after installation) for a comprehensive example (EI and W-2 income, outsie gains/losses, guaranteed partner, ineligible owner, and so on) or just design your own plan - SEP, SARSEP, MP, or PS.

See the COR-SAR program for corporate plan types.

The calculator/solver is driven by the macro ALT+C. If you also need to find the best integration level after using ALT+C, follow with ALT+E.

(a) E.g., you have already solved for a contribution that gave a particular owner a $35,000 contribution with ALT+C. Now use ALT+E to find the best integration level. 50 million calculations are performed and may take a few minutes. Follow the prompts.

(b) E.g., you have made a contribution of $100,000 (shown in cell E-4) by changing the base percentage or by using the ALT+C macro. Now use ALT+E (on cell E-4) to find the best integration level.

SEE TUTORIAL IN INSTRUCTIONS (Start / GSL QPSEP / QP-SEP Instructions)

GSL Galactic Consulting Software Installation (For all Microsoft Windows®-based operating systems, including “Vista”)

Install to hard drive. Run (open or execute) GSL-QPSEP to install QP-SEP (Cor-Sar and Keo-Sar) programs. Accept all defaults. Program will install two icons on your desktop. Click on the desktop icon to launch desired program. Your screen may go blank for a few seconds while program loads (this is normal). Once Title screen loads, press any key to exit Title screen and enter input screen. Press [Alt]+Q at any time thereafter to Exit program. Repeat the process to install SIMPLE Illustrator (GSL-SIMPLE). A third icon will be created.

QP-SEP Illustrator™

Designed to be used for: Designing retirement plans and allocating contributions under SEPs, SARSEPs, profit sharing, and money purchase pension plans for corporations, partnerships, and self-employed individuals.

Key features: Automatically calculates net earned income, self-employment tax, integration spreads, actual deferral percentage (ADP), top-heaviness, and limitations on contributions and their deductibility. Ineligible owner and guaranteed payment partner situations can also be handled. Other factors, such as outside W-2 income and self-employment gains and losses, are also taken into account (if entered). Top-heaviness is based on document type entered, e.g., model or prototype. Client illustrations can be printed, saved, and recalled.

Starting the program: To operate program or to view the instructions after installation, click the Start button, select Programs, open (click on) the GSL-QPSEP and click (open) the icon for the program you wish to run (COR-SAR for corporations, or KEO-SAR for unincorporated entities) or to view or print the instructions and other information charts. The program can also be started directly by clicking the yellow and red "COR-SAR" or "KEO-SAR" icon on your desktop.

SIMPLE Illustrator®

Designed to be used for: Calculating, allocating, and illustrating contributions under SIMPLE IRA and 401(k) SIMPLE plans.

Key features: Maximum contributions -- salary reduction, matching, and nonelective -- are automatically determined, applied, and illustrated on two or more pages. Each illustration contains either two or three side-by-side comparisons from which an employer can choose. Deductible limits and limitations on annual additions under Internal Revenue Code Sections 404, 408, and 415 are automatically taken into account when applicable. Salary reduction amounts can be maximized for each employee, be entered as a dollar amount, or as a percentage of each participant's compensation. Beyond entering the data, there isn't really much else to do. The program is highly functional in doing pretty much everything that has to be done. In the case of a partnership or sole-proprietorship, the nonowner contribution expense is automatically allocated to the owners, but may also be manually entered (provided the percentages total 100 percent).

Starting the program: To operate program or to view the instructions after installation, click the Start button, select Programs, open (click on) the GSL-SIMPLE and click on the icon for the program you wish to run ("SIMPLE Illustrator") or to view or print the instructions and other information charts. The program can also be started directly by clicking the yellow and red "SIMPLE" icon on your desktop.

If you mention "BenefitsLink" you will be treated as an existing user for update purposes.

Call Gary Lesser of GSL Galactic Consulting at (317) 254-0385 for user support, renewals and telephone tutorial. E-mail: qpsep@aol.com Internet: http://www.GaryLesser.com.

ACCEPT ALL DEFAULTS WHEN INSTALLING. THE PROGRAM CAN BE EASILY UNINSTALLED.

GSL_QPSEP.ZIP

GSL_SIMP.ZIP

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Gary,

Can QP-SEP Illustrator handle a partnership where owners have a written agreement to allocate "non-owner contributions to the SEP" equally to 2 of the 3 partners (e.g., A - 50%, B - 50%, and C - 0%)?

Denise

Life and Death Planning for Retirement Benefits by Natalie B. Choate
https://www.ataxplan.com/life-and-death-planning-for-retirement-benefits/

www.DeniseAppleby.com

 

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Yes. Generally, non-owner contributions are allocated in proportion to pre-plan earned income (the default).

If the partner's contribution expense sharing agreement specifies otherwise (e.g., 50%, 50% and 0%) do the following:

(A) In the Contribution to Non-Owners column (column AH) enter the percentages in the owner rows (17-19 in this case) as decimal. [.50, .50, .0]

(B) Change the response in cell AI-15 from "2" (automatic default) to "1" (user defined).

That's all, proceed with design of plan

Note. The percentages must equal 100%. A "?" will appear next to the 0% owner. This can be ignored. This also happens when an ineligible owner is entered (with $0 earned income) and can be ignored.

Hope this helps.

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  • 3 weeks later...

SOLVE-FOR:

The ALT+C macro is used to solve-for a number (e.g, $45,000 allocation (on cell C-17), $200,000 employer contribution (on cell E-4)). The base and (if integrated) excess contribution percentages are automatically changed to find the desired result. The integration level remains as entered. Generally, only this macro is needed to design a plan.

FIND BEST INTEGRATION LEVEL:

To find the best integration level, follow with ALT+E. This macro changes the integration level, base percentage, and excess contribution percentage, to find the lowest employer contribution to achieve the desired result (the cell the macro is played on). If the integration level is fixed or set at the TWB, do not use this macro. Only use this macro if you intend to design an effective plan or plan documents permit the integration level to be changed; a plan amendment is required. This macro may take several minutes to complete (up to 70 million calculations are compared). If the program is minimized, a single beep will be heard when the macro is finished. The macro can also be played in steps (follow the prompts).

TUTORIAL:

A tutorial is provided in the instructions (the functions of all macros are explained). Call me if you need assistance or have questions. I can be reached at 317-254-0385 during business hours. -- Gary

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  • 1 year later...

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