Small business owners have several options for establishing a retirement plan for their employees. The document discusses the need for retirement planning and outlines various plan types including defined benefit pensions, 401(k) plans, SEP-IRAs, and SIMPLE IRAs. It provides details on eligibility requirements, contribution limits, tax benefits and administration considerations for small business retirement plans. UBS Financial Services can help business owners evaluate their options and set up a plan that meets their needs.

1. Small Business Retirement Plans Exploring Your Options

3. O V E R V I E W 1 The Need for Retirement Planning 2 Establishing a Retirement Plan 3 Types of Retirement Plans

5. The Need for Retirement Planning 1 Will you be ready?

7. People are Spending More Time in Retirement Men Women Source: Health, United States, 2007 CDC National Center for Health Statistics Life Expectancy After Age 65 12.8 13.1 15.1 17.1 15.0 17.0 18.9 20.0 1950 1970 1990 2004

9. What are the benefits? Establishing a Retirement Plan 2

14. 3 Have you considered all the options? Types of Retirement Plans

30. Plan Comparison Chart - 2009 * If matching formula is used. Maximum amount shown does not include catch-up contributions. $23,000* 100% of compensation, up to $49,000 Maximum annual contributions (both employer and employee contributions) $2,500 $5,500 Maximum catch-up $11,500 $16,500 Maximum employee deferral SIMPLE IRA Safe Harbor 401(k)

31. Plan Comparison Chart - 2009 Compensation Profit Sharing Plan Profit Sharing Plan With Safe Harbor 401(k) Provisions Profit Sharing Contribution Salary Deferral Safe Harbor Match Profit Sharing Contribution Total Contribution Owner $245,000 $49,000 * $16,500 * $9,800 * $22,700 * $49,000 Employee 1 $40,000 $8,000 * $2,400 $1,600 * $3,706 * $7,706 Employee 2 $30,000 $6,000 * $1,200 $1,050 * $2,780 * $5,030 Employee 3 $20,000 $4,000 * -0- -0- * $1,853 * $1,853 Total $67,000 $63,589 *Contributions made by owner. $18,000 of employer contributions allocated to Employees 1, 2 and 3. $10,989 of employer contributions allocated to Employees 1, 2 and 3. This is a hypothetical illustration and is not intended to project the performance of a specific plan.

34. Owner-Only 401(k) Plan - 2009

35. Owner-Only 401(k) Plan - 2009

47. Plan Comparison Chart SEP-IRA Profit Sharing Maximum service requirement for eligibility 3 of last 5 years 2 years Part-time employees Covered if compensation exceeds $550 per year Covered if working over 1,000 hours per year Vesting 100% immediately Vesting schedules if service requirement is one year or less Loans available No Yes

50. Plan Comparison Chart - 2009 Maximum employee deferral 100% of compensation up to $11,500; $2,500 catch-up contribution age 50 or older 100% of compensation up to $16,500; $5,500 catch-up contribution age 50 or older Required employer contribution Dollar-for-dollar match up to 3% of compensation or 2% non-elective contribution None (unless plan is top heavy) Maximum employer contribution Same as required employer contribution Generally 25% of compensation up to $49,000 Vesting of employer contributions 100% immediately Allowed to vest over time if service requirement is one year or less Required testing None Nondiscrimination and top-heavy Maximum service requirement for eligibility Two preceding years with compensation of $5,000 One year of service at 1,000 hours a year Loans available No Yes SIMPLE IRA 401(k)

56. Contact Information and Legal Entity Layout Box: Select this box and use it to: Insert text - type text and apply a style Insert a Table or MS Graph Resize an object Layout Box: Select this box and use it to: Insert text - type text and apply a style Insert a Table or MS Graph Resize an object Layout Box: Select this box and use it to: Insert text - type text and apply a style Insert a Table or MS Graph Resize an object [Name] Tel: [+XX-XXX-XXX XXXX] [email@XXXX] A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A ABC corp. A A UBS Financial Services Inc. www.ubs.com/financialservicesinc © 2008 UBS Financial Services Inc. All Rights Reserved. Member SIPC. UBS Financial Services Inc. is a subsidiary of UBS AG. Neither UBS Financial Services Inc. nor any of its employees provide legal or tax advice. You should consult with your personal legal or tax advisor regarding your personal circumstances. Layout Box: Select this box and use it to: Insert text - type text and apply a style Insert a Table or MS Graph Resize an object Layout Box: Select this box and use it to: Insert text - type text and apply a style Insert a Table or MS Graph Resize an object Layout Box: Select this box and use it to: Insert text - type text and apply a style Insert a Table or MS Graph Resize an object Layout Box: Select this box and use it to: Insert text - type text and apply a style Insert a Table or MS Graph Resize an object Layout Box: Select this box and use it to: Insert text - type text and apply a style Insert a Table or MS Graph Resize an object Layout Box: Select this box and use it to: Insert text - type text and apply a style Insert a Table or MS Graph Resize an object Layout Box: Select this box and use it to: Insert text - type text and apply a style Insert a Table or MS Graph Resize an object Layout Box: Select this box and use it to: Insert text - type text and apply a style Insert a Table or MS Graph Resize an object Layout Box: Select this box and use it to: Insert text - type text and apply a style Insert a Table or MS Graph Resize an object Layout Box: Select this box and use it to: Insert text - type text and apply a style Insert a Table or MS Graph Resize an object Layout Box: Select this box and use it to: Insert text - type text and apply a style Insert a Table or MS Graph Resize an object Layout Box: Select this box and use it to: Insert text - type text and apply a style Insert a Table or MS Graph Resize an object