| "> | | | | there are a couple different choices that they have |
| | | | when it comes to contributions. First, if the employee |
| You will find several investement vehicles for the | | | | is contributing to the Simple IRA as well, then the |
| small business and its employees, but the most | | | | employer can match dollar for dollar up to 3% of the |
| versatile one is the Simple IRA. | | | | total salary of the employee. On the other hand, if |
| While the most commonly heard of retirement | | | | the employee is not contributing, then the employer |
| savings plan is the 401k plan, there are various other | | | | would only put in 2% of the employees annual salary |
| options for businesses and employees to choose | | | | up to$3400 for each employee, each year. |
| from. While the 401k plan is common and an excellent | | | | Employees also appreciate t his program, since they |
| plan, there are some companies that find it impossible | | | | are 100% vested from the first day they join the |
| to offer this plan, because of its expensive and more | | | | plan. They also feel good about you helping them |
| complex nature. The great thing for businesses, | | | | save retirement money. |
| especially small ones, is there are other alternatives | | | | There are some things to remember if you are |
| that they can use in place of a 401k plan. One such | | | | considering making the Simple IRA your company's |
| alternative is theSimple IRA, which many small | | | | retirement savings plan. First, you can only have a |
| businesses have found to be an easy and | | | | company of up to 100 employees to use the Simple |
| less-expensive answer. | | | | IRA program. If you have more than 100 employees, |
| Although there are several alternatives to using a | | | | you will not be eligible to use this plan. Also, if you are |
| 401k retirement pension plan, such as Keogh Profit | | | | already using a 401k program, you cannot use both a |
| Sharing plans, and SEP IRA's, one of the most | | | | 401k plan and a Simple IRA plan within the same |
| common choices among small businesses is the | | | | business. On the good side, if you currently have less |
| Simple IRA. Why is the Simple IRA such a great | | | | than 100 employees you can start out with a Simple |
| choice for small businesses? Well, first they are easy | | | | IRA plan. After your total employees grows tomore |
| to start and maintain without mountains of confusing | | | | than 100, you will have two years to change over to |
| paperwork. They are also a top choice because they | | | | another plan. |
| are not as expensive to employers as other plans | | | | True, there are various retirement savings plans to |
| can be as well. Usually this plan will only cost between | | | | choose from, but for small businesses, you cannot |
| $15-30 each employee to set up initially, and the | | | | beat the Simple IRA. If you are looking for a |
| record keepingfees for the program will usually only | | | | cost-effective and hassle-free way to supply a |
| cost about $600 each year. | | | | retirement savings plan for your employees, then the |
| Another reason that some small business owners | | | | Simple IRA is a great way to go for your small |
| decide on a Simple IRA retirements savings plan is | | | | business. |