The October 1st deadline is fast approaching…
If you have less than 100 employees, you have until October 1 to set up a SIMPLE IRA plan for you and your employees. Keep in mind that you can’t have another qualified retirement plan (example: a 401(k), 403(b), profit sharing, or defined benefit plan) and a SIMPLE IRA.
You can defer up to $12,500 of your compensation into a SIMPLE for 2016. If you’re 50 years of age or older, you can also contribute an additional $3,000 “catch-up” amount. The company has to contribute a “match” of up to 3% of the employee’s compensation.
If you already have a SIMPLE IRA and want to terminate it (i.e., and start a new qualified plan next year), you have to notify your employees of this by November 2, indicating that the plan will no longer be effective as of the following January 1.
Questions? Contact us at info@zinnerco.com or 216.831.0733 for a no-cost consultation. I’m happy to help and ready to start the conversation.
