Simple IRAs for Small Businesses

Employer-sponsored retirement plans often have a maze of rules, which can be challenging for small business owners and employees to navigate. For small businesses with 100 or fewer employees, there’s an alternative that combines simplicity with flexibility: the SIMPLE IRA.

SIMPLE stands for Savings Incentive Match Plan for Employees, and it offers a streamlined way for employers to make contributions for both themselves and their employees. With fewer rules and simpler administration than many other retirement plans, SIMPLE IRAs might be a choice for small businesses looking to provide retirement benefits with minimal hassle.

‍

Key Benefits of SIMPLE IRAs:

1. Tax-Deferred Savings
   • Contributions to a SIMPLE IRA grow tax-deferred, allowing employees and employers to enjoy potential growth without immediate tax impact. Taxes are only paid upon withdrawal in retirement, which can maximize long-term savings.
2. Simplification
   • Unlike many qualified plans, SIMPLE IRAs don’t have to meet extensive regulatory requirements, making them easy to set up and run. For small business owners, this means less paperwork and fewer administrative headaches.
3. Diversification
   • SIMPLE IRAs through administrators like Mountain West IRA allow participants to diversify in a wide array of assets, including real estate, promissory notes, and precious metals, among others. This flexibility lets employers and employees tailor their accounts to suit individual goals and risk tolerance.

‍
Is a SIMPLE IRA Right for Your Business?

Consider a Mountain West Self-Directed SIMPLE IRA if:

• Your business has fewer than 100 employees
• You prefer a retirement plan with low startup and administration costs
• You want a streamlined way for both you and your employees to save for retirement
• Reducing business taxes is a priority
• You seek to attract and retain talent with a competitive benefits package
• Your employees would benefit from easy payroll deductions for retirement contributions
• You’re looking for flexible contribution levels that can be adjusted based on business needs
• You value the freedom to diversify beyond typical stocks and bonds

‍
Take the Next Step

Providing retirement benefits to your team doesn’t have to be complicated. For more information on SIMPLE IRAs, visit the Mountain West IRA website or contact us to learn more. With a SIMPLE IRA, you can provide valuable retirement savings options for your team, support business growth, and enjoy peace of mind knowing your retirement plan is simple, efficient, and effective. Be sure to speak with your financial planner to see if a SIMPLE IRA works for your retirement goals.