A "Savings Incentive Match

Plan for Employees" or

SIMPLE IRA is a retirement

plan that may be

established by employers,

including self-employed

individuals (sole

proprietorships and

partnerships). A SIMPLE

IRA allows eligible

employees to set aside part

of their pre-tax

compensation as a

contribution to the plan and

defer the tax on the money

until it is distributed to them.

Like other employer plans,

the SIMPLE IRA allows

employers a tax-deduction

for contributions they make

to the SIMPLE IRA plan.

The employee's

contributions to the SIMPLE

IRA are not taxed, but

distributions are taxed. The

tax and penalty treatment

applicable to distributions

from a SIMPLE IRA is

determined by the owner's

age at the time of

distribution. Contributions to

SIMPLE IRAs are

immediately 100% vested,

and the owner of the

SIMPLE IRA directs the

investments.

Because the responsibility

of funding the SIMPLE IRA

is shared between the

employer and employee,

the start-up and

maintenance costs for

SIMPLE IRAs are very low

compared to qualified plans.

914-276-6000

800-498-1819

Click on the link below to

fill out a New York Employee

Benefits Plans contact form.