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simple ira and tira
Old 01-29-2007, 07:19 PM   #1
Confused about dryer sheets
 
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simple ira and tira

Ok need some smart people to give advice on a IRA. I am self employed with 2 employees. I am thinking about starting a simple ira and just making the mandatory contributions for my employees. Then maxing out mine and my wifes at 10,500 plus 3 % match. Could I also make a nondedutible ira contribution of 4,000 apiece for my wife and I. With the plan of converting them to a Roth later on.Thanks
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Re: simple ira and tira
Old 01-29-2007, 07:33 PM   #2
Dryer sheet wannabe
 
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Re: simple ira and tira

My husband and I have a Simple IRA setup through his Scorp. He has 1 employee who does not participate so we don't have to match his 3%. Obiviously, we choose to match 3% vs giving everyone 2%. I work very minimal there and have a salary of approx. $10500 last year with everything being diverted to the Simple IRA. My salary will increase slightly this year due to contribution limits. Additionally, I work for another company and paritcipate in their 401k plan for $5k. My husband and I also max out our Roth IRAs. This is the first year being able to throw a total of $33k into retirement accounts (it kinda hurt).
You will be able to do both the Simple IRA and traditional (nondeductible) IRA. In 2010 you can convert to a Roth IRA.
Robin
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Re: simple ira and tira
Old 01-29-2007, 08:05 PM   #3
Confused about dryer sheets
 
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Re: simple ira and tira

Any ideas on what company has the best simple ira plan?
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Re: simple ira and tira
Old 01-29-2007, 08:36 PM   #4
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Re: simple ira and tira

We use Vanguard. The administration site is as easy to navigate as the regular Vanguard site. Each fund you select is subject to $25/yr admin fee (we are using the Target funds). I usually pay from the Company for the deduction and avoid having them take from the retirement accounts.
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Re: simple ira and tira
Old 01-29-2007, 10:01 PM   #5
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Re: simple ira and tira

I've got a SIMPLE IRA with Schwab and they do a nice job for me.

I do some PT contract work once in a while and I do it through an LLC that I setup several years ago. I have no employees, so have just contributed the $10K plus 3% for myself. Regardless, if I remember correctly, you need to have the SIMPLE plan setup by October of the year in which you want to start. So if you don't have it setup yet, you might be outta luck for 2006.
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