SIMPLE IRA | Ed Slott and Company, LLC

SIMPLE IRA

Is it Too Late to Open Up a Small Business Retirement Plan for 2021?

As we move into 2022, small business owners may be wondering whether they still have time to establish a new retirement plan for 2021. The short answer is: “It depends.” There are several retirement plan options especially designed for small business owners, including the self-employed. These include SEP IRAs, SIMPLE IRAs and Solo 401(k)s. All three can be opened up and maintained easily and inexpensively, and all allow tax-deductible contributions that can be significantly higher than the IRA contribution limit.

SIMPLE IRAs and IRA Contributions: Today's Slott Report Mailbag

Question: Hi, I found you by searching to find out if we can offer two SIMPLE IRA options for our employees. I don't know if that is something permitted. The idea is to have a cryptocurrency option set up as a SIMPLE in addition to the SIMPLE we already have in place. I'm reaching out in the hopes someone can help me with a definitive answer. I have spoken with our CPA, however, he was not sure. Thank you for any help you can provide.

First Time RMDs and SIMPLE IRA Contributions: Today's Slott Report Mailbag

Question: I am going to turn 72 in December of 2021. When I take my RMD, what is the dollar amount I use to calculate my RMD? Is it the account value ending December 31, 2020, or December 31, 2021? Thank you for any clarification. Bob

The Two-Year Holding Period for SIMPLE IRAs

SIMPLE IRAs are not so simple. One factor that makes SIMPLE IRAs tricky is that they are subject to unique rules, found nowhere else in the tax code, such as the two-year holding period. Two-Year Holding Period When does the two-year holding period begin? This is a question that often creates confusion. The two-year holding period begins with the date the employee’s first contribution is deposited to the SIMPLE IRA. It is not the date employment begins or even the date you become eligible to participate in the SIMPLE IRA plan. 25% Early Distribution Penalty Distributions taken from a SIMPLE IRA before age 59 ½ are subject to an early withdrawal penalty of 25% when withdrawn during the two-year holding period.

The Consequences of Breaking Rollover Rules

This week's Slott Report Mailbag looks into IRA rollovers, IRA transfers, and back-door Roth IRAs.

An IRA Rollover Quiz

Most people think it is easy to move their retirement assets. But is it? The following is a quick quiz. How many of these rollover questions can you get correct? The answers are at the end of the quiz.

How Do I Handle My Excess Roth IRA Contributions?

This week's Slott Report Mailbag examines excess Roth IRA contributions and clarifies the two-year rule on an IRA rollover to a SIMPLE IRA.

PATH Act Brought About SIMPLE IRA Rollover Rule Changes

The Protecting Americans from Tax Hikes (PATH) Act of 2015 was signed into law on December 18, 2015. This bill was commonly known as the “Extenders Bill” because it made several favorable tax provisions permanent that had been temporary, some for many years. Buried way down in the PATH Act was a provision that affected SIMPLE IRAs. We outline what has changed.

Five Myths That Should Not Stop Your 2015 IRA Contribution

Have you made your 2015 IRA contribution? If not, why not? Here are five myths that are commonly cited as reasons for not contributing to an IRA. Don’t miss out on your 2015 IRA contribution because you wrongly believe one of them applies to you.

4 Things to Know About Roth IRA Conversions and Pro-Rata Rule

Here are four details you need to know about IRA-to-Roth IRA conversions and the pro-rata rule. The pro-rata rule also applies to employer plan retirement plan distributions, but it is applied differently.

Content Citation Guidelines

Below is the required verbiage that must be added to any re-branded piece from Ed Slott and Company, LLC or IRA Help, LLC. The verbiage must be used any time you take text from a piece and put it onto your own letterhead, within your newsletter, on your website, etc. Verbiage varies based on where you’re taking the content from.

Please be advised that prior to distributing re-branded content, you must send a proof to [email protected] for approval.

For white papers/other outflow pieces:
Copyright © [year of publication], [Ed Slott and Company, LLC or IRA Help, LLC - depending on what it says on the original piece] Reprinted with permission [Ed Slott and Company, LLC or IRA Help, LLC - depending on what it says on the original piece] takes no responsibility for the current accuracy of this information.

For charts:
Copyright © [year of publication], Ed Slott and Company, LLC Reprinted with permission Ed Slott and Company, LLC takes no responsibility for the current accuracy of this information.

For Slott Report articles:
Copyright © [year of article], Ed Slott and Company, LLC Reprinted from The Slott Report, [insert date of article], with permission. [Insert article URL] Ed Slott and Company, LLC takes no responsibility for the current accuracy of this article.

Please contact Matt Smith at [email protected] or (516) 536-8282 with any questions.

 

Find members of Ed Slott's Elite IRA Advisor GroupSM in your area.
We neither keep nor share your information entered on this form.
 

I agree to the terms and services:

You may review the terms and conditions here.