Have you started saving money for retirement? If not, you might want to consult your employer about what they provide. Depending on their capabilities, you might be eligible for enrollment in a simple IRA plan. This is one of the more common plans that people use, but those on the outside may want to know what it's all about. Here are some of the most vital questions that Robert Jain, as well as other financial authorities, can answer.
"First, what's a simple IRA?" By definition, a simple IRA is a retirement plan that employees gain from their places of work. The way that it works, according to such names as Bob Jain, is that employees can allocate certain amounts from their paychecks into their accounts. This is done over the course of several decades. While this money-saving measure takes time, the benefits will be nothing short of worthwhile.
"What about eligibility? Am I allowed to enroll?" You will be able to enroll in a simple IRA, provided you make $5,000 during the current year and have made the same amount during either of the 2 years beforehand. This is usually the case for any full-time employee. What you should know is that there are other requirements, though, especially if your employer establishes new ones. Consult them to have a better understanding of your simple IRA eligibility.
"Why would an employer choose a simple IRA over a 401(k)?" While both plans are similar, there are differences to take into account as well. For instance, hence the name, simple IRAs tend to be less complicated to set up. Not only does this take some of the burden off the shoulders of an employer, but it helps their employees save more money as well. This is just one of the reasons why a simple IRA may be preferred.
"What are some of the benefits of a simple IRA plan?" The benefits of the plan in question are nothing short of numerous. Did you know that this type of plan automatically takes money from your check, meaning that it's automated? You should also know that your employer can match your weekly or biweekly contribution, thereby helping you save even more money. These are just a few reasons why anyone should consider a simple IRA.
"First, what's a simple IRA?" By definition, a simple IRA is a retirement plan that employees gain from their places of work. The way that it works, according to such names as Bob Jain, is that employees can allocate certain amounts from their paychecks into their accounts. This is done over the course of several decades. While this money-saving measure takes time, the benefits will be nothing short of worthwhile.
"What about eligibility? Am I allowed to enroll?" You will be able to enroll in a simple IRA, provided you make $5,000 during the current year and have made the same amount during either of the 2 years beforehand. This is usually the case for any full-time employee. What you should know is that there are other requirements, though, especially if your employer establishes new ones. Consult them to have a better understanding of your simple IRA eligibility.
"Why would an employer choose a simple IRA over a 401(k)?" While both plans are similar, there are differences to take into account as well. For instance, hence the name, simple IRAs tend to be less complicated to set up. Not only does this take some of the burden off the shoulders of an employer, but it helps their employees save more money as well. This is just one of the reasons why a simple IRA may be preferred.
"What are some of the benefits of a simple IRA plan?" The benefits of the plan in question are nothing short of numerous. Did you know that this type of plan automatically takes money from your check, meaning that it's automated? You should also know that your employer can match your weekly or biweekly contribution, thereby helping you save even more money. These are just a few reasons why anyone should consider a simple IRA.
About the Author:
Please consult Bobby Jain if you'd care for further financial information.. Unique version for reprint here: Robert Jain: Simple IRA Questions & Answers Worth Covering.
No comments:
Post a Comment