SEP IRA

Archive for February, 2010

Question: what are the advantages of a SIMPLE IRA vs. a 401k plan for my small business?

Answer: Lower administrative costs and headaches due to less stringent filing requirements. That’s it…. You’re basically funding IRA contributions for them. But, if you’re looking at putting money away for yourself…in an amount greater than 10k? Then it’s not worth it….pay the $$ to start a 401k. The cost differential is not that much different and it’s a true retirement plan. Pointless to put money into a Simple for your staff and then have them turn around and take it right out in 2 years. AND since the amount that you’re putting in for them is basically the same as with a 401k…you may as well just take the next step and take advantage of the extra $5k per year in contributions you can put in.

SIMPLE IRA’s are for company’s whose owner is not married and not making very much in terms of income and isn’t concerned about retirement. Often times it’s because they think they will make so much in their business or can sell it for so much that it will fund their retirement….in most cases they are wrong on both counts.

The Jackets Green Part 2 – Provisional IRA Sinn Fein