The SIMPLE IRA (Savings Incentive Match Plan for Employees) was established as an easier way for a small business to have a retirement plan. The SIMPLE plan can be established by any department that has fewer than 100 employees. Although there can be some limited restrictions placed on employee eligibility, the plan can be made inclusive of all employees with earned income. The SIMPLE IRA allows the employee to save for retirement by deferring salary on a pre-tax basis and receiving a match from the department. Each participant will receive a dollar for dollar match from the department up to 3% of their salary. The employee must contribute to the plan in order to receive the match and can actually defer up to $12,000 annually (for 2017). Individual accounts will be established with the Principal funds and the employees will have 5 Strategic Asset Management Portfolios (SAM) to choose from based on their investment preferences. Individual accounts will be immediately vested. Employees may have retirement plans elsewhere and still be eligible for their departments’ plan. The departments must establish the plan by October 1st to be eligible for current year contributions and match.
The SIMPLE IRA is an excellent way for employees to save money on a pre-tax basis, receive a company match, and grow their assets tax deferred in order to help them with retirement.
*** Also check out Principal Strategic Asset Management (SAM) Portfolios.
(PDF format, Acrobat reader required)
SIMPLE IRA Application
SIMPLE IRA Salary Deferral Contribution Form (please enter Jimmy R. Hare into “Registered Representative” field)
SIMPLE IRA Salary Deferral Agreement
5304-SIMPLE (IRS Form)
Please mail all forms to:
Jimmy R. Hare
Certified Retirement Counselor®
Wells Fargo Advisors
415 N. Spence Avenue
Goldsboro, NC 27534
Ways to reach Jimmy ...
800-372-8753 (toll free)