SIMPLE IRA

Recently, I was asked what type of retirement plan if any I have available to me as an employee of NewPointe. I'm happy to say I have a SIMPLE IRA and I've been participating in it for years.

SIMPLE IRA stands for Savings Incentive Match Plans for Employees (SIMPLE) IRAs are fairly simple to administer, no-hassle IRA plans that offer a great benefit for employees in any "small business".

SIMPLE IRAs allow employees under age 55 to contribute up to $10,500 in 2008 of their annual income to the plan. Employers match this amount as part of the process. Employees are then vested and are eligible to receive this money upon reaching retirement age. Matching contributions by the business are tax deductible.

For the business owner, the only drawback of this type of retirement plan is that the employees doesn’t have to earn his or her vesting, but is vested once the account is opened. That means matching someone dollar for dollar up to 3% from the day they start participating in the plan. That's not that bad but it can hurt if the employee does not stick around very long.

So, now you know. NewPointe uses a SIMPLE IRA