IRA publication 590

IRA (Individual Retirement Account)
Social Security just isn’t enough!

IRA Introduction

An individual retirement account allows you to put away money for retirement and the IRS helps you do it by letting you pay less taxes based on the amount that you invest.  This is in addition to Social Security and/or your Employer Retirement Plan.

IRS Publication #590, explains how your allowed you to save for Retirement – Tax Deferred.   We generally fund them with Annuities  It’s like a bank account, but with an Insurance Company and it can give you a GUARANTEED income for life.

IRS Contributions – Tax Deductible

FAQ’s

Payroll #Deduction IRA

Payroll Deduction IRA for Small Biz # 4587

Payroll Deduction IRA

A payroll deduction individual retirement account (IRA) is an easy way for businesses to give employees an opportunity to save for retirement. The employer sets up the payroll deduction IRA program with a bank, insurance company, or other financial institution, and then the employees choose whether to participate. Employees decide how much they want deducted from their paychecks and deposited into the IRA. They may also have a choice of investments, depending on the IRA provider.

Many people not covered by an employer retirement plan could save through an IRA, but don’t. A payroll deduction IRA at work can simplify the process and encourage employees to get started.

Under Federal law, See Publication 590 A individuals saving in a traditional IRA may be able to receive some tax advantages on the money they contribute, and the earnings on the contributions are tax-deferred. For individuals saving in a Roth IRA, contributions are after-tax and the earnings are tax-free.

Advantages of a payroll deduction IRA:

  • Simple for employees to set up an IRA.
  • Employees make all of the contributions. There are no employer contributions.
  • Many employees find smaller, regular contributions a more manageable way to save.
  • Low administrative costs.
  • No filings with the government to establish the program or any annual reports.  
  • No minimum number of employees required.
  • Program will not be considered an employer retirement plan subject to Federal reporting and fiduciary responsibility requirements as long as the employer keeps its involvement to a minimum.
  • May help attract and retain quality employees.
  • Learn more - read Payroll Deduction IRA for Small Biz # 4587

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