A SIMPLE IRA Plan (Savings Incentive Match Plan for Employees) is a simplified
retirement plan for small and growing businesses. A SIMPLE
IRA Plan allows you to provide a retirement program for yourself and your employees
without the administrative expense, government reporting requirements, and complexity
associated with other types of retirement plans.
Who can establish a SIMPLE IRA Plan?
A SIMPLE IRA Plan is available to any business that:
is a sole proprietorship, partnership, corporation,
or tax-exempt organization,
employs 100 or fewer employees who each received
at least $5,000 in compensation from the company during the
previous year, and
does not currently maintain another company-sponsored
plan (e.g., SEP, SAR-SEP, Profit Sharing, 401(k), etc.)
Why provide a SIMPLE IRA Plan?
Easy to Establish, Simple to Maintain
We provide all the necessary documents and enrollment materials you need
to make offering a retirement plan as streamlined and convenient as possible.
Also, 5500 Series form reporting is not required. You simply take a deduction
on your business tax return for the contributions to your employees
SIMPLE IRA accounts.
Reduce Your Current Year Taxes
Contributions to a SIMPLE IRA Plan are considered a business
expense and are tax-deductible for you, the employer.
Each employees taxable income is reduced by the amount
of his or her salary deferral contributions. Your employees do not pay income
taxes on contributions until they begin to withdraw money from the plan,
usually at retirement. This means that their investment can accumulate more
quickly than in a taxable investment vehicle.
Retirement Planning Control
The money contributed to a SIMPLE IRA Plan, as well as the
investment earnings, are 100% vested. This means that you and your employees
will always have complete control over your own retirement accounts. This
provides additional retirement savings power.
With a SIMPLE IRA Plan, there is no setup fee to establish
your plan. There is an annual $10 maintenance fee for each SIMPLE
IRA account. This fee is waived for accounts with balances over $10,000.
If you are ready to establish a SIMPLE IRA account, visit our
Instructions for Establishing a SIMPLE IRA
page, or call us at 1-800-359-3379.