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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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