Your main options are the SEP IRA, the SIMPLE IRA
and the solo 401(k) plan, which allow you to deduct your contributions, let your earnings grow tax-deferred and get taxed on withdrawals in retirement.
It appears that a rollover from a SEP or SIMPLE IRA
would receive only $1 million of protection, since a Sec.
7 million taxpayers contributed to a SIMPLE IRA
She has a $50,000 balance in a traditional IRA, of which $27,000 represents nondeductible contributions; a $20,000 balance in a SEP-IRA, none of which represents nondeductible contributions; a $10,000 balance in a SIMPLE IRA
, none of which represents nondeductible contributions (assume she has been a participant for more than two years); and a $100,000 balance in a Sec.
The "IRA Online Institute" is a 12-week course developed and supported by Ascensus' professional instructors that teaches essential information on Traditional IRAs, Roth IRAs, SEP plans, and SIMPLE IRA
SEP and SIMPLE IRA
plans do not qualify for this exception because they are IRA-based plans.
Most of the plans available to small businesses--simplified employee pensions (SEPs), salary reduction simplified employee pensions, SIMPLE IRA
plans, SIMPLE 401(k) plans, regular 401(k)s, profit-sharing plans, money purchase pension plan, Keogh plans, defined benefit plans, defined contribution plans, and employee stock ownership plans--are subject to the minimum coverage requirements, minimum vesting standards, the actual deferral percentage test, the non-discrimination requirements, and the top heavy plan requirements.
Individuals covered by a Keogh, SEP or SIMPLE IRA
also qualify for Roth contributions.
After 2009, any type of IRA can be converted to a Roth, including traditional deductible, nondeductible, or rollover inherited IRA, a SEP, or a SIMPLE IRA
With a SIMPLE IRA
employees make salary deferrals that are matched up to a certain percentage by their employer.
Our SIMPLE IRA
is a great benefit for our employees," says Dave Lake, CFO of Hook & Ladder Brewery, which has 25 employees and is based in Silver Spring, MD.
The video portrays real-life experiences of four small employers who operate Simplified Employee Pension (SEP), SIMPLE IRA
and 401(k) plans.