Self Directed SIMPLE IRA

Home Page   >   Self-Directed Plans   >   Self Directed SIMPLE IRA

Self Directed SIMPLE IRA Basics:

The Savings Incentive Match Plan for Employees (SIMPLE) IRA is an IRA-based plan that gives employers an easy way to make contributions toward their employees’ and their own retirement. This is a popular plan for smaller companies with 100 employees or less.

Funding Your Self-Directed SIMPLE IRA

The most common mechanism used to fund a Self Directed SIMPLE IRA is making a contribution to your account. You may also transfer funds from another IRA or roll funds over from a qualified plan.

Employer Contributions: Match up to 3% of each employee’s compensation or $11,500, whichever is less.  Contributions are deductible as a business expense.
Employees are not required to contribute in any given year.

Why Consider a Self Directed SIMPLE IRA?

• You have a company with less than 100 employees.
• You are looking for a plan with low start-up and administrative costs.
• You want a plan that provides you and your employees with a simplified way to contribute toward retirement.
• You need to reduce business taxes.
• You want a plan that can help you attract and retain quality employees.
• You are looking for a plan that is easy to set up and run – New Direction handles most of the details.
• You want your employees to contribute through convenient payroll deductions.
• You would like flexibility in how much to contribute to the employees plan.

Please consult your tax professional for the plan that best suits your individual needs.