The (Savings Incentive Match Plan for Employees) SIMPLE IRA is a business-sponsored retirement plan that allows employees to make pre-tax salary deferrals of up to $11,500(2011),($14,000 if age 50 or older) annually. For existing businesses, the plan must be established between Jan. 1 and Oct. 1 of the calendar year.
This plan is suitable for sole proprietors, partnerships and corporations that do not maintain, during any part of the calendar year, another qualified plan with respect to which contributions are made or benefits are accrued for service in the calendar year. The employer must have 100 or fewer employees who have earned at least $5,000 in compensation for the prior year. Nonprofit organizations, including government entities, may have these plans.
The employees of Warren Wealth Management do not provide tax or legal advice. As with all matters of a tax or legal nature, you should consult with your tax or legal counsel for advice.