2010 RETIREMENT PLAN LIMITS

On October 15, 2009, the IRS released the retirement plan limits that will be in place for 2010:

....................................2009..........2010

401(k) Elective Deferrals.........$16,500.......$16,500
Catch Up Contribution Limit.......$ 5,500.......$ 5,500
Annual DC Contribution Limit......$49,000.......$49,000
Annual Compensation Limit........$245,000......$245,000
Highly Compensated Employee......$110,000......$110,000
403(b)/457 Elective Deferrals.....$16,500.......$16,500
SIMPLE Employee Deferrals.........$11,500.......$11,500
SIMPLE Catch Up Deferral..........$ 2,500.......$ 2,500
SEP Minimum Compensation..........$ 550.......$ 550
SEP Annual Compensation Limit....$245,000......$245,000
Social Security Wage Base........$106,800......$106,800

CLIENT OF THE MONTH

Each month we draw attention to one of our clients that has a unique story. In this issue we are pleased to highlight one of our longest-term clients (in excess of 20 years), Daniels Oil Company of Portland, CT.

Daniels Oil Company began in the 1920s with coal and range oil; over the years, and three generations of family ownership, Daniels Oil has developed into a full-service fuel supplier, excelling in the heating and air conditioning industry by focusing on prompt and “’old fashioned’ friendly customer service.” From home heating oil and propane delivery, to boiler, A/C and water heater installation and service, Daniels Oil Company “will offer you the most in terms of quality, convenience, and value.”
With a main location in Portland, CT, Daniels Oil also has a location in Essex, CT, allowing them to service the entire region quickly and efficiently.

We encourage you to visit their website at www.danielsoil.com (or click the link in the title above) for more information on the services and products they offer.

IRS Retirement Plan Navigator

The IRS just rolled out a new web-based tool on their site, www.retirementplans.irs.gov/ (or click the title of this article above to be brought to the site automatically). This tool was deigned for small businesses, with the focus on

* Choosing a plan type
* Maintaining a plan
* Correcting a plan

Set up as a simple side-by-side comparison, the site will not recommend a particular plan, but rather highlight the plan features, with the intent on aiding the decision-making process.

Grow Your Business...Secure Your Spot Today!

Wells Thomas, LLC is pleased to announce our latest informational meeting for investment professionals working with Retirement Plans. Below is a copy of the invitation (click on the image to see full scale). If you are interested in attending, please contact Wells Thomas at seant@wellsthomas.com or Justin Terman of Meeder Financial at justint@meederfinancial.com.

We look forward to seeing you on September 30!

CLIENT OF THE MONTH

We are beginning a new feature: Client of the Month. Each month we will draw attention to a client who has a unique story. To kick this off, we are pleased to highlight Reynolds’ Garage & Marine Inc. of Lyme CT.

Reynolds’ Garage & Marine Inc. has recently celebrated their 150th year in business. Some of the highlights in the history of the business include:

• 1859 - Ephraim Otis Reynolds starts the business where he built two- and four-seat carriages
• 1890 - Wagon production ends as Studebaker beings its assembly line production. Ephraim enters the repair business
• 1909- Ephraim sells the business to son Hayden
• 1919 - Donald Grant (son of Hayden) begins repairing automobiles, including Studebakers and Model T Fords
• 1932 - the docks and dredging for the marina took place
• 1942 - Leland purchased the business from Donald
• 1977 - Gary purchased the business from Leland
• 1991 - Subaru franchise acquired
• 2009 - On April 9 Governor M. Jodi Rell officially declared "Reynolds Garage & Marine Day"
• Currently - Business also sells and services: Yamaha Outboards, Cobia, Skeeter and G3 Boats. The dealership employs all three of Gary’s children who are the sixth generation: Leland Thomas, G. Hayden Jr., and Kathryn. (“The History of Reynolds’ Garage and Marine”, Kathryn Reynolds Wayland)

We encourage you to visit their website at http://www.reynolds1859.com/ for more information on the unique history of a sixth-generation run family business, as well as the services and products they offer.

Wells Thomas, LLC is a proud sponsor of the Branford Jazz Series

Wells Thomas, LLC is pleased to be a sponsor of the 2009 Branford Jazz Series. Every Thursday night, from July 9th through August 20th a different jazz artist will be featured in a FREE concert on the Green in Branford.

Click on the title above to be taken to the official website for more information, a complete schedule, directions and parking.

Come on out and catch some great live music and enjoy the shops and award-winning restaurants in Branford..We look forward to seeing you there!

Connecticut Bill On Retirement Plans - Update

An April 15, 2009 the CT Appropriations Committee voted 30 - 24 in FAVOR of SB No. 1. Below is the language as passed by the committee.

AN ACT CONCERNING ECONOMIC SECURITY FOR CONNECTICUT FAMILIES.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. (NEW) (Effective from passage) (a) As used in this section, "small employer" means a business with one hundred or fewer employees.
(b) The Comptroller shall establish a tax-qualified defined contribution retirement program to provide retirement investment plans, including, but not limited to, those created under Section 401 of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended, to self-employed individuals, small employers and organizations qualifying as tax-exempt pursuant to Section 501(c)(3) of said Internal Revenue Code. In administering such plan, the Comptroller shall seek to minimize costs by helping small employers, such organizations and individuals purchase retirement savings plans, arrangements and investments through economies of scale, standardization and other measures.
(c) In carrying out the provisions of this section, the Comptroller shall contract with a third-party administrator for the management of such plan or plans and shall recover from program assets expenses incurred to initiate, operate and administer the program established pursuant to subsection (a) of this section.

Wells Thomas, LLC opposes this bill.

Click on the title of this article to be taken to the CT Government Website to track this bill.