Have You Considered a Simple or Payroll Deduction IRA?

You’d like to offer some type of retirement plan. You’ve looked at several options including a 401(k) plan. You just aren’t sure which option to choose. Have you considered a payroll deduction IRA or a Simple IRA?

Payroll Deduction IRA

This IRA is the simplest way to offer a retirement plan. The employee establishes a traditional or Roth IRA and authorizes a payroll deduction for a specified amount. As the employer, your responsibility is to send the authorized deduction to the financial institution. At year-end, you report the deducted amount on the employee’s W-2. That’s it.

It is best to offer the payroll deduction IRA option to all employees, although there is no legal requirement to do so. Read more...