When it comes to retirement planning, there are numerous options available. One of the most common, however, is the simple IRA plan. It's one of the most dependable ways to build an account when it comes time to retire, but the specifics may not be clear. For those that would like to learn more about the plan in question, here are some questions & answers that Robert Jain will be able to cover.
"First, what's a simple IRA?" By definition, a simple IRA is a retirement plan that employees gain from their places of work. The way that it works, according to such names as Bob Jain, is that employees can allocate certain amounts from their paychecks into their accounts. This is done over the course of several decades. While this money-saving measure takes time, the benefits will be nothing short of worthwhile.
"What about eligibility? Am I allowed to enroll?" You will be able to enroll in a simple IRA, provided you make $5,000 during the current year and have made the same amount during either of the 2 years beforehand. This is usually the case for any full-time employee. What you should know is that there are other requirements, though, especially if your employer establishes new ones. Consult them to have a better understanding of your simple IRA eligibility.
"What does a simple IRA plan have that a 401(k) plan lacks?" The differences between these plan options are numerous, even though their goal of saving for retirement remains the same. For those that are interested in simple IRA plans, they tend to be easier and less expensive to set up. They also allow for employer contributions, which we will expand upon soon. These benefits are noteworthy, not only for business owners but their workers as well.
"How does a simple IRA benefit me?" While this type of retirement planning saves you money, there are other ways that it can benefit you. For example, did you know that if you contribute a certain amount to your savings account, your employer can match it? What this means is that, in theory, you can retire sooner. This is a great benefit that more people should consider if they're looking into simple IRA enrollment.
"First, what's a simple IRA?" By definition, a simple IRA is a retirement plan that employees gain from their places of work. The way that it works, according to such names as Bob Jain, is that employees can allocate certain amounts from their paychecks into their accounts. This is done over the course of several decades. While this money-saving measure takes time, the benefits will be nothing short of worthwhile.
"What about eligibility? Am I allowed to enroll?" You will be able to enroll in a simple IRA, provided you make $5,000 during the current year and have made the same amount during either of the 2 years beforehand. This is usually the case for any full-time employee. What you should know is that there are other requirements, though, especially if your employer establishes new ones. Consult them to have a better understanding of your simple IRA eligibility.
"What does a simple IRA plan have that a 401(k) plan lacks?" The differences between these plan options are numerous, even though their goal of saving for retirement remains the same. For those that are interested in simple IRA plans, they tend to be easier and less expensive to set up. They also allow for employer contributions, which we will expand upon soon. These benefits are noteworthy, not only for business owners but their workers as well.
"How does a simple IRA benefit me?" While this type of retirement planning saves you money, there are other ways that it can benefit you. For example, did you know that if you contribute a certain amount to your savings account, your employer can match it? What this means is that, in theory, you can retire sooner. This is a great benefit that more people should consider if they're looking into simple IRA enrollment.
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Please contact Bobby Jain if you would like more financial information.. Unique version for reprint here: Robert Jain: Simple IRA Questions & Answers Worth Covering.
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