OverviewJust keep things simple.A SIMPLE IRA* is a powerful retirement plan option for businesses with 25 or fewer employees, providing many features of traditional retirement plans, but with lower costs and less paperwork.
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![]() For businesses with 25 or fewer employees |
Features & BenefitsHere’s How it WorksWith just minimal paperwork, you set up Individual Retirement Accounts (IRAs) for each employee. Employees elect to contribute a portion of their salary, up to a certain amount, to the plan. As the employer, you either match contributions dollar for dollar (up to 3% of pay) or contribute 2% of pay for all eligible employees. You can participate as well: the only difference is that your voluntary contributions are based on a percentage of the business’s net earnings, rather than on compensation. Once the plan is in place, participants reap these advantages:
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SIMPLE IRA Plan
Helps employees save for retirement
Immediate vesting
Tax advantages
* IRAs are funded with tax deductible contributions in which any earnings are tax deferred until withdrawn. Roth IRAs are funded with non-deductible contributions in which any earnings are tax deferred until withdrawn. Roth IRAs are funded with non-deductible contributions, but as with Traditional IRAs, all earnings are deferred. Unless certain criteria are met, restrictions, IRS penalties, and income taxed may apply on any withdrawals taken from IRAs prior to age 59 1/2.
** Securities and financial planning offered through LPL Financial, a registered investment advisor, member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates. SEFCU and SEFCU Wealth Management Services are not registered broker/dealers and are not affiliated with LPL Financial.
Not NCUA Insured |
Not Credit Union Guaranteed |
May Lose Value |
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Not Guaranteed by any Government Agency |
Not a Credit Union Deposit |