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.
"Am I eligible to enroll in a simple IRA plan?" Yes, but only if you make a certain amount of money during the year. To be more specific, you must earn at least $5,000 during the year to be eligible for simple IRA plan enrollment. Your employer might establish other guidelines, though, which means that you must know all your rights. This is where you consult your employer to have a better understanding of your eligibility.
"If I'm looking into a 401(k) plan, what can a simple IRA offer me instead?" There are many reasons why one should go with the latter over the former. Unlike a 401(k), a simple IRA tends to be simpler to set up. It's also worth noting that they cost less to set up in the first place, which is a great money-saving measure for any employer. For these reasons alone, it would make sense for a simple IRA to be preferred by a business owner.
"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.
"Am I eligible to enroll in a simple IRA plan?" Yes, but only if you make a certain amount of money during the year. To be more specific, you must earn at least $5,000 during the year to be eligible for simple IRA plan enrollment. Your employer might establish other guidelines, though, which means that you must know all your rights. This is where you consult your employer to have a better understanding of your eligibility.
"If I'm looking into a 401(k) plan, what can a simple IRA offer me instead?" There are many reasons why one should go with the latter over the former. Unlike a 401(k), a simple IRA tends to be simpler to set up. It's also worth noting that they cost less to set up in the first place, which is a great money-saving measure for any employer. For these reasons alone, it would make sense for a simple IRA to be preferred by a business owner.
"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 contact Bobby Jain if you would like more financial insight.. This article, Robert Jain: Simple IRA Questions & Answers Worth Covering is available for free reprint.
Aucun commentaire:
Enregistrer un commentaire