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Traditional IRAs, Roth IRAs, and Rollover IRAs are the 3 most common types of individual retirement accounts. Variations of common IRA types include Inherited IRAs and Custodial IRAs. There are 2 more types of IRAs, the SEP IRA and SIMPLE IRA, which are intended for self-employed individuals and small businesses.
Eligibility requirements are low. In general, you're eligible to participate in a SIMPLE IRA if you've received at least $5,000 in compensation during any two preceding calendar years and expect to earn at least that much during the calendar year of participation.
Fidelity's Savings Investment Match Plan for Employees (SIMPLE IRA) makes it easier for self-employed individuals and small businesses with 100 or fewer employees to offer tax-advantaged retirement plans. With Fidelity, you have no account fees and no minimums to open an account.
Best individual retirement accounts Best overall: Charles Schwab IRA. Best for beginner investors: Fidelity Investments IRA. Best for experienced investors: Vanguard IRA. Best for hands-off investors: Betterment IRA. Best for hands-on investors: E*TRADE IRA.
If you are self-employed or own a business with 100 or fewer employees, you are eligible to establish a SIMPLE IRA plan, as long as it is the only retirement plan you fund.
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Three Steps to Set up a SIMPLE IRA Plan Execute a written agreement to provide benefits to all eligible employees. Give employees certain information about the agreement. Set up an IRA account for each employee.
3% matching contribution - match of employee's elective deferrals on a dollar-for-dollar basis up to 3% of the employee's compensation. May reduce the 3% limit to a lower percentage, but in any event, not lower than 1%.
Only certain fund families have mutual funds that are eligible investments for SIMPLE IRAs with no minimum initial investment requirement. No account fees and no minimum to open an account.
Employer Contributions to SIMPLE IRAs An employer can choose to either make a dollar-for-dollar match of up to 3% of a worker's pay or contribute a flat 2% of compensation, whether the employee contributes or not.
How much must I contribute for my employees participating in our SIMPLE IRA plan? You're generally required to either: match each employee's salary reduction contribution on a dollar-for-dollar basis up to 3% of the employee's compensation (not limited by the annual compensation limit), or.

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