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Savings Incentive Match Plan for Employees (SIMPLE) IRA

The SIMPLE IRA encourages employees to set aside tax-deferred funds for retirement. Designed for small businesses with fewer than 100 employees and for self-employed individuals, the SIMPLE IRA allows for both employee and employer contributions. It offers employees the opportunity to participate through salary reductions without the expenses associated with traditional employer-sponsored retirement plans.

SIMPLE IRA Features
  • All employee and employer contributions are fully vested
  • Contributions are tax-deferred until withdrawn
  • Employer contributions are due by the employer's tax-filing deadline, including extensions
  • Withdrawals are taxed as ordinary income*
Employee Eligibility Requirements
  • No minimum participant requirement
  • Must have received at least $5,000 in payment during preceding two years and will earn at least $5,000 during the current year
Contribution Limits
  • Employee Contributions – Up to $8,000 or 100% of income, whichever is less. If age 50 or more, a catch-up contribution of $1,500 is allowed
  • Employer Contributions – Either a non-elective annual contribution of 2% of an employee’s salary or a matching contribution of 3% each year
For more information about Simple IRAs, or to schedule a complimentary consultation with one of our financial advisors, please call 714/258-4000 Monday through Friday, from 9 a.m. to 5 p.m.

*Withdrawals before two years of participation are subject to an additional penalty of 25%, unless you are 59½ or older or meet other exceptions. After this two-year wait, the rules applicable to Traditional IRAs apply.

*Securities sold, advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor. CBSI is under contract with SchoolsFirst Federal Credit Union to make securities available to members. Not NCUA/NCUSIF/FDIC insured, May Lose Value, No Financial Institution Guarantee. Not a deposit of any financial institution.

CUNA Brokerage Services, Inc., is a registered broker/dealer in all fifty states of the United States of America.


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