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  • Writer's pictureGinger Coberley

Simple IRA 2018 – Core Financial

LISTEN UP– If you are associated with a business that has fewer than 100 employees, this information could CHANGE YOUR FUTURE!! Many small businesses are not able to provide benefits, especially retirement benefits, because the cost can be just too much! A SIMPLE IRA could provide just what is needed to change that situation!!

That Savings Incentive Match Plan for Employees (SIMPLE) offers many unique features that can make it affordable for both employees and employers. The most important feature is that EMPLOYERS CAN GIVE EMPLOYEES AN AVENUE TO BUILD RETIREMENT SAVINGS!!! Also, by doing that, employers can get a tax break because of the business expense of putting money aside for their employees!! It absolutely can be a win-win and may be something many employees would want to participate in!!

Two options are available. One allows optional participation by each employee to contribute a percentage of the monthly income to his or her IRA account. By doing so, the employer can offer a match of 1% to 3% of the employee’s gross monthly salary, which will ALSO be put into the employee’s IRA. Employees who choose not to participate will not receive the employee benefit. There are certain situations and stipulations under which the employer may vary the match that is made. However, the employee is able to contribute as much as a total of up to $12,500 to the IRA, $15,500 if age 50 or older, for the current year. That allows the chance to do a bit of “catch up” on building funds for the future!

The second option that can be chosen by the employer would be a 2% match for every employee, whether or not that employee chooses to participate with his or her own contribution.

If the employee retires, resigns or is terminated, and the SIMPLE has been in place at least 2 years, it can be rolled over to an individual IRA and remain in the individual’s control.

For complete details, contact Core Financial at 719-336-5550. Employers who offer benefits can possibly have a better chance of keeping their valued employees!!

Securities and investment advisory services offered through Signator Investors, Inc. Member FINRA, SIPC, a Registered Investment Adviser.

Core Financial is independent of Signator.

111 W. Parmenter Lamar, CO 81052 576-20180606-457747

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