If you are unaware, the deadline for filing a Simple IRA for your business is approaching fast. What is a Simple IRA? The Simple IRA allows small businesses to contribute to their employees’ retirement plans, without that business to go through the expensive of establishing a 401k. Thus, employees get retirement plans, while small businesses avoid administration fees. Other benefits include:
- Quick, easy setup with a phone call to your financial institution.
- Employees covered by a business’s Simple IRA can contribute to their individual Simple IRA using regular payroll deductions.
- Employers can match employee contributions or they can contribute a fixed percentage of all eligible employees’ pay.
If you are not sure if your small business is eligible for a Simple IRA program, the requirements are:
- You employ 100 or fewer individuals
- Your business does not currently offer other retirement plans
- 1-2 forms to be completed