Simple IRA: 10 Valuable Benefits

6 minutes

What the heck is a Simple IRA?

Picture courtesy of
Picture courtesy of

The SIMPLE IRA is an acronym for Savings Incentive Match Plan for Employees. This plan allows employees and employers to contribute to a Traditional IRA which is set up for employees.

The ideal use of the SIMPLE IRA is for start-up retirement savings plans for small employers not currently offering any sort of retirement plan.

I’ve touched on these statistics before but did you know that:

  • the average 50-year-old only has $42,797 saved.
  • 45% of Americans having nothing saved.
  • 38% don’t actively save for retirement at all.
  • 20% of Americans tap into their 401k savings early, either thru a loan or early withdrawal
  • 80% believe they will not have enough savings when they retire.

These numbers scare the crap out of me and that is why we are here talking about this subject.

If I can make the difference with just one person my mission will be complete.

This is why we are talking about all the different retirement plans out there so you have some ideas of which would be the best fit for you. And how they could help you.

Benefits of a SIMPLE IRA

1. Very easy to setup.

A Simple IRA is very easy to setup and is ideal for the small business that wants to offer a retirement plan for their employees.

There are no start-up costs and no operating costs of a conventional retirement plan.

It is available to any small business with less than 100 employees. And it is easily established by filling out a few forms. These forms are available at

There are no filing requirements for the employer, but keep in mind that they may not have any other retirement plan currently setup.

Continue reading “Simple IRA: 10 Valuable Benefits”

10 Useful Benefits you wanted to know about a Roth IRA

4 minutes


Picture by Chris Potter at
Photo by Chris Potter at

There is a serious retirement crisis in America. Too many people have little to no savings and aren’t doing anything to help their situation.

45% of Americans have saved nothing for retirement, including 40% of Baby Boomers. 38% don’t actively save for retirement at all. 20% of Americans dip into their 401k accounts early.

The good news is that you can change your situation and that is why we are continuing our discussion of different retirement vehicles and how they can help you on your journey to save for retirement.

Next up we will look at what a Roth IRA is and how it can be of benefit to you.

What is a Roth IRA?

A Roth IRA is a special retirement account where all the taxes are paid up front and then all future withdrawals are free. This differs from the Traditional IRA which defers all the tax consequences until a later time.

There are no upfront tax deductions like there is with a Traditional IRA. The great thing about the Roth IRA is that there are no penalties for distributions from monies that are contributed.

What this means is that any monies you contribute are tax-free at any time during its time in a Roth IRA. You would be responsible for any taxes due on the earnings or dividends paid .

In other words, any money that is earned would be taxed but not the original contribution.

Continue reading “10 Useful Benefits you wanted to know about a Roth IRA”