Carol McBeth, Director of Retirement Planning, 1^st Global

June 2, 2005 -- Do you want to boost your retirement savings potentially up to $42,000 annually? Consider taking advantage of the generous contribution limits available through a One-Person 401(k) plan.  One-Person 401(k) plans are a profit sharing plan with a 401(k) feature designed for businesses with no employees other than the owner and the owner’s spouse.  Whether you earn $10,000 or $10 million, this plan could be for you.

What are the Benefits of a One-Person 401(k)?

• Generous contribution limits.  As a result of the tax law changes in 2001, you may contribute up to $42,000 in 2005 to the plan in a combination of salary deferrals and profit sharing. Contributions are based on compensation (earned income if you are self-employed) and are structured in two components: salary deferral contributions and profit sharing contributions.

-      Maximum salary deferral contribution for 2005 is $14,000 if under 50, and $18,000 if age 50 or over.

-      Profit Sharing contributions can also be made  each year up to 25 percent of compensation.

-       Combined salary deferral and profit sharing contributions cannot exceed the lesser of 100 percent of compensation or $42,000 per person per year in 2005.

·      Flexibility: Both salary deferrals and profit sharing contributions are not mandatory.

·       Vesting: You are 100 percent vested immediately.

·       Loans:  Leans may be permitted depending on document.

How does the One-Person 401(k) plan work?

There are two basic contribution types:

• Profit Sharing (employer) – The profit sharing contribution, which can vary from year to year, can range from zero to 25 percent of compensation. Contributions must be made no later than the employer’s tax return due date, including extensions.

• Salary deferral (employee) – Salary deferral contributions, can range from $0 to $14,000 for 2005.  In addition, if the business owner is age 50 or older, he or she will qualify for an additional “catch-up” salary deferral contribution of $4,000 in 2005.

If you meet the criteria for a One-Person 401(k) your financial advisor can help you explore your options in the context of your overall financial goals.  Talk to your financial advisor today for trusted advice on retirement planning.

For more information, call Doug Hall at 215-564-1900 .

Securities offered through1st Global Capital Corp. Member NASD, SIPC. Investment Advisory Services offered through 1^st Global Advisors, Inc.  8150 N. Central Expressway, Suite M-1000, Dallas , TX 75206 , 1-800-959-8440 .  Asher Financial Advisors, LLC is not affiliated with 1st Global Capital Corp.

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