Re: 2009 Planning: Retirement Savings for the Self-Employed

Dear Client:

In recent years, many options have become available to self-employed individuals to provide for their
retirement. Tax planning for retirement can include contributions to a Keogh plan, traditional or Roth IRA, SEP
plan, SIMPLE plan or a one-person 401(k) plan. You may wish to consider the implementation of one of these
plans for yourself and/or your employees to benefit from a current tax year deduction and accumulate tax-
deferred retirement savings.

Each of these plans has advantages and disadvantages, and some may not be applicable to your situation. For
instance, a sole-owner 401(k) retirement plan allows a contribution for you as both an employer and as an
employee. Therefore, a sole-owner 401(k) may provide for the largest deductible contribution. However, a sole-
owner 401(k) is not available to the self-employed with employees other than a spouse or relative. As an
alternative, a Keogh plan provides more flexibility, but is more complicated to maintain than a SEP or SIMPLE
plan. Regardless, of which plan you qualify for or what your retirement needs are, it is important to begin
planning now for your retirement.

Please call our office to arrange an appointment. We will be happy to discuss the various retirement plan
options and how they might apply to your business.

Sincerely yours,