The Simple IRA Offers Tax Advantages For Both The Employer And Employee
Posted by admin
The simple IRA offers tax benefits for small businesses who wish to offer a retirement savings plan to its employees. Companies with 100 employees or less are eligible to participate in this tax-deferred savings plan. This retirement plan is easy to establish. Also, there are no annual IRS reporting requirements. Both the employer and employee make contributions to the IRA plan. Employers can take a tax deduction on the amounts contributed to the plan on the behalf of employees. Employees can make contributions on a pretax basis. The amounts will accumulate as tax deferred until funds are distributed from the plan.