In this case, the term “employee” includes a self-employed individual who receives earned income.
The Savings Incentive Match Plan for Employees (SIMPLE) IRA is a salary reduction arrangement wherein the employee elects to defer a percentage of compensation, before taxation, each pay period into a SIMPLE IRA. The employer then contributes the salary deferral, along with a matching amount, to the account on behalf of the employee. The contributions and earnings in these plans are not taxed until withdrawn.
A self-directed SIMPLE IRA allows you to invest your retirement funds in real estate, notes, mortgages and other assets you may choose to acquire.
Consider a self-directed SIMPLE IRA if:
The most common way to fund any retirement plan is by making a contribution to your account. You may also roll over or transfer funds from an existing employer plan, such as a 401(k), a pension plan or another SIMPLE IRA. If your current retirement account does not allow self-direction, you may also transfer those funds to an Advanta IRA account so you may choose your own investments.
|SIMPLE IRA||$12,500 (+ $3,000 if 50 and over) + up to 3% of employer match||$12,500 (+ $3,000 if 50 and over) + up to 3% of employer match|