How Simple IRA Plans Work

Simple IRA's are often times the ideal type of reitrement plan for small businesses with employees. Before jumping to a 401(k) plan make sure you underthe difference between a Simple IRA plan and a 401(k) plan. This video will review contribution limits, establishment deadlines, employee eligibility, the employer contribution formula, vesting, compliance requirements, and the special 2 year distribution rule that applies to Simple IRA accounts.
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[@mezi_cosmetics111]

Great content!! This video was the only one that actually made sense to me thanks so much for the info!

[@jomission5793]

great info

[@MansaMode]

Is it possible to roll my Simple IRA into a Roth IRA? If so, what do I need to take into consideration before making that decision? If not, is there another rollover option similar to a Roth IRA?

[@greenbushfinancialgroup]

You can’t “rollover” a Simple IRA to a Roth IRA. You can process a conversion from a simple iRA to a Roth IRA but you have to pay tax on the full amount in the simple Ira in the year that you process the conversion and you cannot take money out of the simple to help pay the tax bill without facing taxes and the 10% early withdrawal if you are under age 59 1/2. You have to go from a Pre-tax acct to a pre-tax account to avoid taxation on the rollover. (Comment is for education. Not advice) #gfg

[@anaroman1499]

@@greenbushfinancialgroup I was told to wait 2 years to do anything with the money, which is ridiculous. I cant even roll it over to any 401k or another IRA account.

[@kevinedward4195]

I and 65 years old, and I have a simple IRA at my non-profit. Can I rollover the simple ira to a solo 401k?

[@greenbushfinancialgroup]

As long as the simple Ira has been in existence for at least 2 years, yes, you can roll over the simple IRA into your solo 401k plan, tax and penalty free. (comment for education. Not advice.)

[@kevinedward4195]

@ushfinancialgroup Now the big question, do I wait until 2028 when Maryland stops taxing 401k withdrawals, or do a roth conversion sooner. Fed taxes could go up, and I loose roth earnings.

[@jdb7918]

How soon can you begin to withdraw on a simple IRA?

[@greenbushfinancialgroup]

You have to over the age of 59.5 to avoid the 10% early withdrawal penalty. Also if you make a withdrawal within 2 years of the inception of the simple IRA account, and you are under age 59.5, the 10% penalty becomes a 25% early withdrawal penalty. (Comment is for education. Not advice)

[@brandonclancy2875]

If the employer elects for matching contributions for the year, and employees choose not to participate, does that mean the employer doesn’t have to contribute at all, or does it default to non-elective?

[@greenbushfinancialgroup]

You are correct. If you choose a matching contribution and the employees do not contribute anything to the plan, The employer is not required to make a contribution. (Comment is for education. Not advice)

[@jameslineman4238]

My employer set up a simple IRA since Jan 2016. He contributed 3% for only one year. I have been contributing up to now and he never match for the past three years. I am on the verge of resigning. Can I ask her to match now for those she did not? Can she said no I am not obliged? Need your help. Thx

[@greenbushfinancialgroup]

James lineman please send this question to my personal email address and I will provide you with an answer
[e-mail] (Comment is for education. Not advice)

[@doragarcia6125]

If I contribute $1000, what is the 3% match?

[@greenbushfinancialgroup]

It depends on your compensation. That is what the 3% match is based off of (Comment is for education. Not advice)

[@RaulGarcia-qn5mv]

@@greenbushfinancialgroup Is the match determined by Gross or Net compensation?