Reply to New retirement account - Roth, Simple, or something else?

Forum Index » Money and Finances

Reply to "New retirement account - Roth, Simple, or something else?"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=OTAlexFA][quote=Anonymous][quote=OTAlexFA]The good news is, even though they're not matching, your employer is required to contribute to your SIMPLE IRA.  So, that's a good deal for you.

Outside of that, make sure you can qualify for a Roth (salaries) and determine how much you would like to put away (SIMPLE has higher contribution limits).  Roth IRAs are amazing vehicles, if they're right for you.[/quote]

How are they required to contribute? I've had mine for years and my employer hasn't contibuted.[/quote]

Contributions:
Employer is required to contribute each year either a:
*Matching contribution up to 3% of compensation (not limited by the annual compensation limit), or
*2% nonelective contribution for each eligible employee

Under the “nonelective” contribution formula, even if an eligible employee doesn’t contribute to his or her SIMPLE IRA, that employee must still receive an employer contribution to his or her SIMPLE IRA equal to 2% of his or her compensation up to the annual limit of $255,000 for 2013 (subject to cost-of-living adjustments in later years)

http://www.irs.gov/Retirement-Plans/Choosing-a-Retirement-Plan:-SIMPLE-IRA-Plan
[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics