A SIMPLE IRA (Savings Incentive Match Plan for Employees) is a convenient, tax-favored retirement plan for small
business owners who do not maintain any other type of plan.
The key features of a Simple IRA include:
- Relatively easy to administer
- Allows employees to defer up to $10,500 (2007 limit) of annual income into their own retirement account
- Employees who are age 50 or older can defer an additional $2,500 (2007 limit), pre-tax, each year
- Employers can choose to either match the employee’s deferrals, dollar-for-dollar, on the first 3% of pay or make a non-elective contribution of 2% of the employee’s total eligible compensation
- Provides considerable flexibility in determining contributions
- Available to companies with 100 or fewer employees
- Allows employers to establish a plan that lets employees make their own contributions
RBC Dain Rauscher does not provide tax advice. We will work with your independent
tax advisor to help create a plan tailored to your specific needs |
