Simple IRA

Mountain West IRA – SIMPLE IRA

Tax Advantages for You and an IRA for Your Employees

A Savings Incentive Match Plan for Employees (SIMPLE IRA) is an IRA-based plan that gives employers an easy way to make contributions toward the retirement of their employees and themselves. This type of plan is designed for small businesses with 100 employees.

2018 contribution limits allow a Mountain West self-directed SIMPLE IRA, employee to make salary reduction contributions of up to 100% of salary up to $12,500 plus a catch up contribution of $3,000 if 50+. The employer may either make a dollar-for-dollar match of annual compensation to all participating employees of three percent (3%) each year; or a 2% non-elective contribution to all eligible employees regardless of participation on income up to $265,000 (2018). All contributions are made directly to an IRA account that has been established for each employee (SIMPLE IRA). Eventual distributions are taxed as ordinary income.

Also, with a Mountain West self-directed SIMPLE IRA, you can invest your retirement funds in real estate, notes, and many other alternative investments.

Consider a Mountain West Self-Directed SIMPLE IRA if:

  • You have a company with less than 100 employees
  • You are looking for a plan with low start-up and administrative costs
  • You want a plan that provides you and your employees with a simplified way to contribute toward retirement
  • You need to reduce business taxes
  • You want a plan that can help you attract and retain quality employees
  • You are looking for a plan that is easy to set up and run
  • You want employees to contribute through convenient payroll deductions
  • You would like flexibility in how much to contribute to the employees’ plan
  • You are looking for a wider range of investment choices including rental real estate, raw land, 1st trust deeds, notes, LLCs, and more
SIMPLE IRA Contribution Limits 2018
Employee Elective Deferrals Up to $12,500
Catch Up Elective Deferral
Contribution Age 50+
$3,000
Total Employee Elective Deferrals, age 50+ $15, 500
Employer can elect from two different contribution methods. Check with your employer which option they have chosen. Employer contributions are in addition to your elective deferrals.

Self-Directed Simple IRA Application (PDF)

 

Please consult your tax professional for the plan that best suits your individual needs.

Contact a Mountain West IRA professional to establish a self-directed Simple IRA.