Want us to keep you updated?

Join our Mailing List

E-mail:

 Simple IRAs 

Corporations, partnerships, sole proprietorships, tax-exempt entities and state or local governments (without another retirement program) can establish a Simple IRA.

To do so, you can have no more than 100 employees and they must receive at least $5,000 in compensation during any two previous years.

Plans must be established between January 1 and September 30 each year. While employer contributions are required, employee contributions are voluntary. The employer contributions must be made by the employer tax return date plus any extensions. The employee deferral contributions must be made no later than 30 days after the last day of the month to which the salary deferral amounts relate. The employer/taxpayer directs the investments.

Several advantages of a Simple IRA include the following: contributions are deductible for the employer, there is no discrimination testing, they are not subject to top heavy rules, there is some funding responsibility with employees and deferral reduces taxable income to the employee.

Contact a Financial Consultant to learn more


Symbol: IBOC Last Trade: 23.71 Change: Change Image Financial Links

  

© 2010 IBC Investment Services. All Rights Reserved

Securities and Insurance products offered through LPL Financial and its affiliates, Member FINRA / SIPC. International Bank of Commerce is not a registered broker dealer and is not affiliated with LPL Financial.

NOT A DEPOSIT | NOT FDIC-INSURED | NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY | NOT GUARANTEED BY BANK | MAY LOSE VALUE

This site is designed for U.S. residents only. The services offered within this site are available exclusively through our U.S. registered representatives. LPL Financial Services’ U.S. registered representatives may only conduct business with residents of the states for which they are properly registered. Please note that not all of the investments and services mentioned are available in every state.