SEP IRA

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Question: Can I have both a SIMPLE IRA and a ROTH IRA? What are the Contribution limits for each?

Answer: The SIMPLE IRA is a low-maintenance retirement plan that offers many features of the more common 401(k) without the complexity, administrative burden and increased administration costs. The SIMPLE allows self-employed business owners or “side business owners” to defer up to a maximum of $6,500 a year (plus certain matching Contribution amounts) from their net business earnings
The ideal candidate for a SIMPLE is a self-employed individual who makes less than $35,000 and has the financial resources available to maximize retirement plan contributions. With a SIMPLE, the maximum Contribution would be $7,470 ($6,500 elective deferral portion plus a matching Contribution of $970) which is greater than the maximum amount allowed with a SEP or a combination Keogh plan.

The combined maximum allowed for the Traditional IRA and a Roth IRA is limited to $4,000 per year, or $4,500 for age 50 and over)

Welcome to our SEP IRA & SIMPLE IRA blog.

The SEP and SIMPLE IRA blog is here to bring resources on SEP IRAs and SIMPLE IRAs, including Keogh retirement plans, SIMPLE IRA Rules, and SEP IRA Contribution limit. SEP IRA, SIMPLE IRA and Keogh plans are very beneficial for some self employed business owners. We will outline all the IRA rules associated with SEP IRA, SIMPLE IRA, and Keogh plans. All information on this SEP IRA and SIMPLE IRA website are free resources to help you make more informed decisions about your retirement plans.

Let us get straight to the point. Most employers, including Sole Proprietors, Partnerships, Corporations, “S” Corporations, Tax Exempt Organizations and any State or Local Government Agency may establish a SEP IRA or SIMPLE IRA for their business employees.

Generally, all employees satisfying the following criteria MUST be included in the SEP IRA or SIMPLE IRA accounts:

• At least age 21
• have worked for the employer in any part of three out of the last five years,
• have earned at least $450 during the year (adjusted annually by the Treasury

Self-employed individuals may establish a SEP IRA for themselves.

So, if you are looking for:	Consider a:
Maximum flexibility No IRS form 5500 filings Opportunity to defer as much as $41,000 per year for each eligible employee	Sep Ira
A plan that allows eligible employees to contribute for their own retirement. No IRS form 5500 filings Largest deductible Contribution allowed in a defined-Contribution retirement plan.	SIMPLE IRA