Simple IRA is actually an acronym for Savings Incentive Match Plan for Employees Individual Retirement Account. It is an employer sponsored plan similar to 401ks, 403b, etc., but with much lower admin costs.
It can be funded with pretax dollars, but is still subject to FICA, FUTA, SUTA. The contribution limits for 2013 are $12,000 for those age 50 and younger and $14,500 for those older than age 50.
Agent Owner, Gilmore Insurance Services, Marysville, Washington State
what is a SIMPLE retirement plan? A Simple is an inexpensive opportunity for a small business to have a retirement plan that doesn't break the bank in advisor fees. A Simple plan is an IRS approved plan with only a few steps to follow so expensive testing and record keeping aren't necessary. For any small business who are considering a retirement plan to offer, this should be right on top as it does provide a great platform for a business who would rather use it's money to put towards employees retirements rather than third party administers plans.
.JPG){kind=avatar}
It can be funded with pretax dollars, but is still subject to FICA, FUTA, SUTA. The contribution limits for 2013 are $12,000 for those age 50 and younger and $14,500 for those older than age 50.