For Entrepreneurs A Simple IRA May Be Best

Written by Tim Knox

Continued from page 1

My preferred type of retirement plan isrepparttar Savings Incentive Match Plan for Employees or SIMPLE IRA. The SIMPLE IRA was created to make it easier for small businesses with 100 or fewer employees to offer a tax-advantaged, company sponsored retirement plan.

With a SIMPLE IRA you and your eligible employees may contribute up to 3% of earned income (with a maximum contribution of $10,000) on a pre-tax basis to individual SIMPLE IRAs. You must deduct Social Security and Medicaid from your gross income, but you can then make your SIMPLE IRA contribution before other taxes are levied, effectively lowering your taxable income.

Asrepparttar 150886 employer you must make “matching” or “non-elective” contributions into your employees’ SIMPLE IRA accounts. Matching contributions means thatrepparttar 150887 business matchesrepparttar 150888 elective deferral contributions made by employees. For example, ifrepparttar 150889 employee opts to contribute 3% of his salary torepparttar 150890 plan,repparttar 150891 employer must matchrepparttar 150892 3% contribution.

At first you might cringe at matching your employees’ contributions, but asrepparttar 150893 business owner and an employee yourself this can be great news. As an employee of your own business you can contribute up to $10,000 to your SIMPLE IRA andrepparttar 150894 business can then match your contribution dollar-for-dollar, which means that you can put up to $20,000 in tax free dollars intorepparttar 150895 plan per year. The cost ofrepparttar 150896 contributions is also deductible as a business expense.

The non-elective contribution option requires thatrepparttar 150897 company contribute 2% of every employee’s earned income torepparttar 150898 plan onrepparttar 150899 employee’s behalf regardless of whether or notrepparttar 150900 employee contributes torepparttar 150901 plan himself. For 2005repparttar 150902 maximum contribution you would be required to make is $4,200.

Like a traditional IRA, you can withdraw money from a SIMPLE IRA at any time; however distributions withinrepparttar 150903 first two years of participation are subject to higher early withdrawal penalties than traditional IRAs or Roth IRAs. Withdrawals withinrepparttar 150904 first two years are subject to a 25% early withdrawal penalty. Withdrawals taken afterrepparttar 150905 first two years are subject to a 10% early withdrawal penalty.

Asrepparttar 150906 employer,repparttar 150907 advantages of a SIMPLE IRA include: company contributions torepparttar 150908 plan are tax deductible as a business expense; plan documents are simple and easy to administer; administration costs are low; and there is no government reporting required byrepparttar 150909 employer.

The advantages of a SIMPLE IRA for your employees include: contributions are immediately 100% vested; contributions and earnings are tax-deferred until withdrawal; employees can contribute 100% of earned income up to $10,000 for 2005; and employees can direct their own investments withinrepparttar 150910 IRA.

This is a complex topic and I’ve just tippedrepparttar 150911 iceberg here, but hopefully this will give you enough information to getrepparttar 150912 investment ball rolling.

Here’s to your success!

Tim Knox

Tim serves as the president and CEO of three successful technology companies and is the founder of, an online organization dedicated to the success of online and eBay entrepreneurs. Related Links:

Small Business Checks – Money Saving Options

Written by Robb Ksiazek

Continued from page 1

Finding a vendor to handle your blank business check supply is easy onrepparttar internet. There are many companies online that offerrepparttar 150839 printing services. You can expect to findrepparttar 150840 aforementioned styles of checks, and maybe a few more options specific torepparttar 150841 printer. You pickrepparttar 150842 styles and designs that you find applicable to your business. There are many color schemes and designs, but there may be a better option.

New torepparttar 150843 check world isrepparttar 150844 photo check. A few check printers allow you to submit a JPEG photo or graphic and they will print it on your checks. What this means, is that for a few dollars more, your business logo will be placed on your checks. You get more exposure for your business, and it really doesn’t cost that much more.

The orders only take about a week of so, or faster if you rushrepparttar 150845 order. You’ll find that many of these sites also provide many other needed office items like pens, paper supplies, and staples. When you buy all your stuff in one place, it leaves you with more time to get your business offrepparttar 150846 ground.

Robb Ksiazek researches and writes valuable information for His writings discuss topics based on the home and small business office and how to get the most out of your resources.

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