Business.com
Buy Buy
Home » Directory » Human Resources » Compensation & Benefits » Retirement » IRAs » Savings Incentive Match Plan for Employees IRA (SIMPLE-IRA)

SIMPLE IRAs

Vendors of Savings Incentive Match Plan for Employees IRAs. SIMPLE IRA's are affordable alternatives for small businesses or sole proprietors that may not be able to afford a traditional 401(k) plan.
401ks Designed for Small Businesses and Individuals
Low-cost, on-demand and easy to setup plans from ShareBuilder 401(k). Plans for 1 or more priced from $15-$200/month. Get a Free Quote in minutes.
www.ShareBuilder401k.com
SEP IRA From E*TRADE Securities
Open Online in Just Minutes with no fees or minimums. Apply Now!
Open an Account | Pricing and Rates
ETRADE.com
SIMPLE IRAs
Quotes for market indices components, chains and charts. Open an Account.
www.optionsxpress.com
Simple Iras
No Setup or Maintenance Fees. Quick Online Setup. Get Started Now
TDAMERITRADE.com
Iras
AARP Financial: Official Site. Speak to an Investment Counselor.
www.aarpfinancial.com
Simple Iras
Choose from a Traditional, Rollover Roth, SEP or an educational IRA!
optionsXpress.com
Find the Right IRA
Scottrade – ranked best low-cost IRA by Kiplinger’s Personal Finance
www.Scottrade.com
Self-Directed IRA
More Control, Higher Returns & No Fees or Penalties. Start Today!
www.GuidantFinancial.com
Iras?
Buy Real Estate in Your IRA. Fast Cash Flowing & Tax-Free Income
iraCashFlow.com
Iras
Compare Traditional IRA & Roth IRA To Determine the Best IRA for You!
www.AmericanCentury.com
The No-Hassle IRA
Easy to open, fund and invest. Apply at E*TRADE Securities.
ETRADE.com
Financial Planning
Woodland Hills, California Free Financial Analysis
www.SeniorBenefits.info

Guide to Self-Employed Pension Plans

Let Uncle Sam pay for part of your retirement


Access to a variety of tax-advantaged retirement plan choices is one of the key perks of self-employment. There are several good options that are easy to set up and cheap to maintain, including the SIMPLE IRA, Simplified Employee Pension IRA (SEP-IRA) and Solo 401(k).

These plans all offer tax-deductible contributions. And money inside the plans grows tax-free until you take it out. Three keys to finding the right one:

  1. Retirement plan choices for the self-employed all have key differences, so you need to investigate carefully which one is right for you.
  2. The most significant differences are: how much money you can put in and what happens if you add staff later on.
  3. According to the American Institute of Certified Public Accountants (AICPA), you can't fully fund more than one in a single year, so you need to make a wise choice.


Action Steps

The best contacts and resources to help you get it done

Fly solo with a 401 (k) The Solo 401(k) is great if your business is raking it in and you need to catch up on retirement savings. A generous contribution formula lets you sock away a larger portion of earnings at a lower income level than with other plans. You can also borrow against a Solo 401(k) -- handy if you fear locking up your money long term.

I recommend:  AICPA has complete Solo 401 (k) details in a great site called 360 Degrees of Financial Literacy. The IRS has a good PDF download 401 (k) Plans for Small Business. The 401 (k) Help Center is a terrific place to discover plan details and download a Directory of 401 (k) plan providers. The Small Business Channel has advice on how to choose the best plan and find plan vendors. See how much you can contribute to a Solo 401 (k) with a contribution calculator. Do it all online with The Online 401 (k) for small business.

SEP-IRAs work for one-person shows The SEP-IRA is great if you run a one-person show and intend to keep it that way. Open one at virtually any bank, mutual fund company or brokerage firm. The contribution limit is 25 percent of net income up to $44,000 (adjusted periodically for inflation). If you hire help later, however, funding rules can make this plan costly, and loans are not allowed.

I recommend:  One appealing SEP-IRA feature is funding flexibility. These plans let you wait until you file your taxes to fund the plan. So if your income turns out to be higher or lower than expected, you can adjust your contribution to fit. See how a SEP plan works and how to establish a SEP.

Get sophisticated pension power with a SIMPLE IRA The SIMPLE IRA is good for entrepreneurs who aspire to run bigger businesses.

I recommend:  Even if you add employees, you can keep the same plan. But "SIMPLE" stands for "savings incentive match plan for employees," so you will have to match employee contributions up to three percent of pay. AICPA has complete SIMPLE IRA details. Also check how a SIMPLE IRA works and how to establish a SIMPLE IRA.

See side-by-side comparisons Plan features are different, and confusing. See how they stack up.

I recommend:  The IRS publication Choosing a Retirement Plan Solution for your Small Business (PDF) has handy side-by-side comparison charts that can help you choose the best plan for your needs.

Tips & Tactics

Helpful advice for making the most of this Guide
  • As a supplement to a SIMPLE plan, consider adding a Roth IRA. While the Roth isn't really a business owner plan, it's a great option if you have more savings available after fully funding a SEP, Solo 401(k) or Simple IRA. You can put the maximum $4,000 into a Roth ($5,000 if 50+) if your adjusted gross income is under $110,000 ($160,000 for married couple). You get no tax deduction for the contribution, but money grows tax-free and withdrawals are tax-free in retirement.
  • If your business is really booming and you want to set aside even bigger dollars, consider a profit sharing plan. This option is more complex and it's a good idea to talk with a CPA or other retirement plan expert about setting it up.
  • One drawback of the SIMPLE IRA is a low contribution limit. You can stash away no more than $10,000 per year ($12,500 if you are 50 are older), which might be too little.

Directory Listings  |  Web Listings  |  Advertise With Us
Checkmark

How-To Guide from WORK.COM

Guide author
By Daniel Kehrer
Let Uncle Sam pay for part of your retirement.
Access to a variety of tax-advantaged retirement plan choices is one of the key perks of self-employment. There are several good options that are easy to set up and cheap to maintain, including the SIMPLE IRA, Simplified Employee Pension IRA ... Read more
Sponsored Links

B2B search marketing Free B2B search marketing whitepaper, 2008 B2B Search Marketing Strategy Guide: Advice From the Pros.
To advertise on Business.com, click here

Refine Your Search

Subscribe to

Try our free weekly WhatWorks
newsletter, with business how-to advice
& resources from Work.com.

click here to view a sample issue

Advertising Center | Advertiser Login | Business Finance | Featured Listings | Human Resources | News
© 2008 Business.com, Inc. All Rights Reserved. Privacy | Terms Of Use | Help | About Us | Jobs | Work.com