How are the simple IRA contributions set?

The Plan of Motivation Matches for Savings for Employees for a single pension account (Simple IRA) is a pension plan that allows employers and employees to contribute funds. Contributions that can be provided to a simple IRA include salary reduction contributions provided by employees and corresponding contributions to employers. Employer's contributions to simple IRA may also include employers' non -employers. Within a simple IRA plan, there is a limit for each type of post. In the United States, simple IRA contributions are set by the Internal Revenue Service (IRS). For 2010 and 2011, the IRA salary reduction limit is $ 11,500 USD (USD). A simple IRA contribution limit for employees for employees contributing to more than one plan is $ 16,500.

After the age of 5 years, those who hold a simple IRA can contribute other posts as posts. Maximum catch of catching up for 2010 and 2011 is $ 2,500USD. Reducing salary and catching allowances are the only type of employees' contributions that can be provided to a simple IRA.

Simple IRA contributions for employer contributions are a bit more complicated. These limits depend on whether the employer contributes to the dollar for the dollar corresponding to contributions, a lower contribution or a non-non-existent contribution. If the employer contributes to the dollar for the dollar, it may contribute the amount corresponding to the employee's salary reduction, but only up to 3% of the employee compensation.

If the employer decides to contribute to the retirement of an employee in a lower percentage, they must contribute at least 1%. In addition, employers can do not more than two of every five years. If the employer decides to contribute in a lower percentage, they must inform the employee in time. Employers should surely examine all regulations regarding this matter beforeBy decision on proper compliance with all rules on retirement contributions and simple IRA contributions.

Employers can also provide employers' unalutive contributions. Neealuctive contributions to simple IRA can be brought to 2% of employee compensation. For 2010 and 2011, contributions can be provided by simple IRA employees up to the first $ 245,000 from a salary or employee compensation.

The employee may contact his employer or the company's department of the company about information about the current simple IRA contributions. Further information regarding simple IRA plans and simple IRA contributions should be contacted by the employer or retirement account owner. There is Also information about these plans for government tax, retirement and financial websites.