There are two main alternatives to a SIMPLE IRA for small-business owners: SEP-IRAs and solo 401(k)s. Here’s a quick run-through on both of these retirement plans and who they’re for. SEP-IRA Asimplified employee pension (SEP-IRA)is another retirement plan option for small-business o...
The biggest difference between a SIMPLE IRA and a 401k is that for the latter, employer contributions are optional (unless the 401k plan has a "safe harbor" provision) while for the former, they are mandatory. Businesses having over 100 employees cannot offer SIMPLE...
ASIMPLE IRAis a retirement savings plan that is designed for small business owners. For small business owners who have employees, the plan works like a401(k), because both the employer and the employee can contribute to the plan. A SIMPLE IRA offers tax benefits for both employers and employ...
The Savings Incentive Match Plan for Employees (SIMPLE) IRA is suited for both self-employed individuals with no other employees and small business owners with 100 or fewer employees. It's a "simple" plan to operate, but you should be aware that there are some ongoing administrative responsibil...
Business owners and the self-employed have more than one way to set up a retirement account for themselves and their employees. Two of the most popular are the SEP IRA and the SIMPLE IRA, both of which offer many of the major tax advantages of a regular IRA. These plans also offer ...
Like a SIMPLE IRA, a401(k) savings planis designed to set aside earnings for retirement. While both are offered through employers, the SIMPLE IRA is specifically for small-business employers. With a 401(k), an employee makes contributions to their account and the employer may match some of ...
contribution limits. If you are looking to contribute a higher amount to your retirement savings, a 401(k) may be the better choice. However, if you are a small business owner or self-employed individual, a Simple IRA can still provide a viable and tax-efficient option for saving for ...
Workplace retirement programs play an important role in attracting and retaining employees, helping workers (and owners!) save, and provide significant tax advantages. Employer contributions to “qualified” plans (like 401(k) plans) or IRA-based plans are deductible by the business when made, ...
What Is the Difference Between a SIMPLE 401(k) and a SIMPLE IRA? Both SIMPLE IRA and SIMPLE 401(k) plans are options for small business owners to provide retirement benefits to themselves and their employees. The key differences are that SIMPLE 401(k)s allow for loans while SIMPLE IRAs do...
Traditional IRAs and Roth IRAs are the two major types of IRAs available to individual investors. Small business owners and self-employed people can also open aSIMPLE IRAor aSEP IRA. The main difference between traditional and Roth IRAs lies in the tax treatment of your contribution. ...