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SCHOOLSFIRST INVESTMENT SERVICES

SIMPLE IRA

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Savings Incentive Match Plan For Employees (SIMPLE) IRA

If you’re self-employed or a small-business owner, a "savings incentive match plan for employees" IRA is simple way for you and your employees to save for retirement.

Unlike a SEP IRA, both employees and employers can contribute to a SIMPLE IRA. Employees elect to make pre-tax contributions1 from their salary, and the employer matches it. Or, employers can make contributions on employees’ behalf.

As the name implies, a SIMPLE IRA is easier to set up and administer than other employer-sponsored retirement plans such as a 401(k).


How it Works

  • Employees defer pre-tax income into the plan, up to $13,500, or $16,500 if they’re 50 or older.
  • An employer can choose to make either matching contributions, from 1% to 3% of his or her salary, or;
  • Make non-elective contributions of 2% of the employee's salary, no matter what or if the employee contributes.
  • Contributions not made by the IRA deadline may incur fees or require filing an amended tax return.
  • Unlike some other employer-sponsored plans, eligible employees cannot opt out of participating.

How to Qualify

  • Be a business, including a sole proprietor, with fewer than 100 employees.
  • Be an employee who has earned at least $5,000 in pay for any two previous years and at least $5,000 in the current year.

LET’S TALK

Would you like to learn more?

Set up a meeting with a financial advisor.

Call 800.462.8328 ext. 4116, Option 2

Monday through Friday, 8 a.m. - 5 p.m.

Email

Contact us by email at investments@schoolsfirstfcu.org

Disclosures


Securities are offered through LPL Financial (LPL), a registered broker-dealer(member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. SchoolsFirst Federal Credit Union and SchoolsFirst Investment Services are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using SchoolsFirst Investment Services and may also be employees of SchoolsFirst Federal Credit Union. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, SchoolsFirst Federal Credit Union or SchoolsFirst Investment Services. Securities and insurance offered through LPL or its affiliates are:

Not Insured by NCUA or Any Other Government Agency | Not Credit Union Guaranteed | Not Credit Union Deposits or Obligations | May Lose Value

The LPL Financial registered representatives associated with this website may discuss and/or transact business only with residents of the states in which they are properly registered or licensed. No offers may be made or accepted from any resident of any other state.

  1. This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.