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.
"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.
"How does a simple IRA benefit me?" While this type of retirement planning saves you money, there are other ways that it can benefit you. For example, did you know that if you contribute a certain amount to your savings account, your employer can match it? What this means is that, in theory, you can retire sooner. This is a great benefit that more people should consider if they're looking into simple IRA enrollment.
"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.
"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.
"How does a simple IRA benefit me?" While this type of retirement planning saves you money, there are other ways that it can benefit you. For example, did you know that if you contribute a certain amount to your savings account, your employer can match it? What this means is that, in theory, you can retire sooner. This is a great benefit that more people should consider if they're looking into simple IRA enrollment.
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Please contact Bobby Jain if you'd care for more financial insight.. Free reprint available from: Simple IRA Plan Questions That Robert Jain Can Answer.
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