Business Retirement Plans
Simple IRA Contribution
Designed to encourage small businesses to adopt retirement plans for their employees. An eligible employer may be a self-employed individual, a partnership, or a corporation. A SIMPLE IRA plan permits employees to make salary-reduction contributions to SIMPLE IRAs. Employers are required to either make matching or non-elective contributions to these SIMPLE IRAs.
A SIMPLE IRA plan may be established for the year no later than October 1 of that year (generally). Please consult with your attorney and tax advisor because of the tax and legal consequences.
| Employee Salary Reduction Contributions | Employer Matching Contributions | Employer Non-elective Contributions | |
|---|---|---|---|
| Annual Contribution Limit | 100% of employee's compensation up to $11,500 (if under age 50) | Match salary reduction contribution dollar for dollar up to 3% of employee's compensation. | 2% of employee's compensation (max. of $3,400) |
| Contribution Deadline | As soon as administratively feasible, but not later than end of 30-day period following last day of month funds were withheld from employee's pay. | Employer's tax-filing deadline (including extensions) | Employer's tax-filing deadline (including extensions) |
| Eligible Employees | Generally, every employee who received at least $5,000 in compensation from the employer during any two previous years and is expected to earn at least $5,000 during the current year. | Any employee who makes salary reduction contributions | Generally, every employee who is expected to receive at least $5,000 in compensation from the employer during the current year, even if employee makes no salary reduction contribution. |
Our Retirement Specialists are ready to answer any questions you may have regarding Individual Retirement Accounts and how Wauchula State Bank can help you!
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