A SIMPLE IRA (Savings Incentive Match PLan for Employees) gets both the employer and the employee involved in contributing to a retirement account. While employees are 100% vested from inception, there are steeper penalties for withdrawing money from the account within the first two years of participating.
- SIMPLE IRAs are relatively easy to set up and run
- Contributions are tax-deductible for employers
- Employee contributions are pre-tax
- Earnings grow tax deferred
- Employers can choose a matching feature or a percentage of wages
- Matching employer contributions belong to the employee immediately and can go with them if they leave
“Being a busy real estate broker and appraiser I don’t always have time to make a trip to the bank, so I use My Bank’s online banking services. I can deposit, pay bills, and transfer money. Who could ask for anything more?”