A Simple IRA is a type of tax-deferred employer-provided retirement plan that allows employees to set aside money and invest it to grow for later use. Specifically, it is a type of Individual Retirement Account that is set up to be an employer-provided plan. It is an employer sponsored plan, like more well-known plans such as the 401(k) (profit-sharing plans) and 403(b) (Tax Sheltered Annuity plans), but offers simpler and less costly administration rules. Like a 401(k) plan, the SIMPLE IRA is funded by a pretax salary reduction. Like other salary reduction contributions, these deductions are subject to social security, Medicare, and FUTA taxes.
Have Questions about IRA's?
Have questions about IRA, or other self directed accounts? Call the experts at Horizon Trust TodayCall a Horizon Trust Specialist at