Schannep Investment Advisors

Schannep Investment Advisors, Inc.
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BSchannep@SIATucson.Com

Telephone:       520-544-2500
Toll Free:         866-544-2500
Fax Number:    520-544-0499

Securities offered through
First Allied Securities, Inc.
A registered broker/dealer.
Member FINRA/SIPC.

Schannep Investment Advisors is a
registered investment adviser in the
state of Arizona.

First Allied Securities, Inc. does not
endorse or support this web site, nor
are they affiliated with
Schannep Investment Advisors, Inc.

Retirement Plan Features at a Glance (as of 1/06)

	Contribution Limit	Investment Options	Suitability For Employees	Administrative Requirements	Key Advantage	Key Disadvantage	Who Should Consider
IRA & ROTH	Up to the Lesser of $4,000 or 100% of Earned Income With $1,000 Catchup	Annuities, Mutual Funds, CDs	Personal Plan: Not Designed For Employee Benefit Purposes	NONE	Completely Your Own Plan	$4,000 Contribution Limit	Almost Everyone's First Plan
IRA & ROTH		No Life Insurance	Personal Plan: Not Designed For Employee Benefit Purposes	NONE	Completely Your Own Plan	$4,000 Contribution Limit	Almost Everyone's First Plan
SEP	Company is 25% of Earned Income or $44,000 Whichever is Less. Sole Proprietor limit is 20%	Annuities, Mutual Funds, CDs	Limited By Restricted Plan	Simple Document No Annual Filing	Employee Plan With Least Paperwork	Must Include Part-Time Employees Full Vesting	Employer With Maximum IRA and No Employees
SEP		No Life Insurance	Limited By Restricted Plan	Simple Document No Annual Filing	Employee Plan With Least Paperwork	Must Include Part-Time Employees Full Vesting	Employer With Maximum IRA and No Employees
SIMPLE	Up to First $10,000 Of Earned Income Plus Match With $2,500 Catchup	Annuities, Mutual Funds, CDs	Best for Small Business With Very Limited Income	Document, Annual Meeting, Some Tracking	Largest Deduction For Owners With Limited Income	Must Match Employee Contribution Up to 3%	Smaller Employer With Low Income Employer With "Side Income"
SIMPLE		No Life Insurance	Best for Small Business With Very Limited Income	Document, Annual Meeting, Some Tracking	Largest Deduction For Owners With Limited Income	Must Match Employee Contribution Up to 3%
Individual K	Company limit is 25% PLUS $15,000 salary deferral. $42,000 is maximum contribution.	Annuities, Mutual Funds, CDs No life insurance	Limited to sole proprietors	5500 EZ	Maximum contributions with loan provisions	Can not have employees	Small business owners and their spouses who receive compensation from the business
Profit Sharing	25% of Overall Pay Up to $44,000 Individually	Any Prudent Investment including Life Insurance	Very Good For Work Incentive: Appeals to Younger Employees	Document, Annual Government Filing Employee Reports	Flexible Contributions	Provides Limited Benefits For Older Participants	Employer With Young Employees and Variable Income
Money Purchase	25% of Overall Pay Up to $44,000 Individually	Any Prudent Investment including Life Insurance	Best for Employees If Maximum Contribution Made	Document, Annual Government Filing Employee Reports	Davis Bacon Option	Plan is Obsolete	Employers with "Prevailing Wage" Issues
Age Weighted	25% of Overall Pay Up to $44,000 Individually	Any Prudent Investment including Life Insurance	Appeals to Multiple Older Owners With Younger Partners	Document, Annual Government Filing Employee Reports	Flexible Contributions and High Allocation to Older Worker	High Installation Cost	Older Owner of Closely Held Company
New Comparability	25% of Overall Pay Up to $44,000 Individually	Any Prudent Investment including Life Insurance	Appeals to Multiple Older With Younger Partners	Document, Annual Government Filing Employee Reports	Flexible Contributions and High Allocation to Older Worker	High Installation and Administrative Cost	Multiple Owners of Closely Held Company
401(k)	$15,000 Plus $5,000 Catchup in Employee Contributions	Any Prudent Investment including Life Insurance	Best for Younger Employees If Maximum Contribution Made	Document, Annual Government Filing Employee Reports	Catchup Provisions Save Harbor Election Positive Employee Perception	Complex Administrative Requirements	ALL EMPLOYEES
Defined Benefit	Maximum Benefit is 100% of Pay up to $175,000	Any Prudent Investment including Life Insurance	Best for Older Employees Due to Guaranteed Benefit	Document, Annual Government Filing Employee Reports Actuary Certification	Favors Older Participants Can Also Have 401(k) Plan	Complex Administrative Requirements High Cost	Older Employer With Stable Income

Source: Pension Service Design While this table is believed to be reliable, Schannep Investment Advisors cannot guarantee its accuracy or completeness. This report is prepared for general circulation and is for informational purposes only. It is not intended as an offer or solicitation for the purchase or sale of any financial instrument or service. Market prices and other data may be obtained from outside sources and is not warranted as to completeness or accuracy. Any comments, statements and/or recommendations made herein do not necessarily reflect those of First Allied Securities, Inc., its subsidiaries or affiliates, and are subject to change without notice.

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Securities offered through First Allied Securities, Inc. A register broker/dealer. Member FINRA/SIPC.
Schannep Investment Advisors is a registered investment adviser in the state of Arizona. First Allied Securities, Inc. does not endorse or support this web site, nor are they affiliated with Schannep Investment Advisors, Inc.