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    Simple ira

    What does it take for a Self Employed person to set up a Simple plan? Besides going to the investment firm say (Edward Jones or who may it be), is there a deadline to have it set up by? Anything else? Client is interested in what all is involved. What required paper work is there to file for this SCH C ?

    Thanks

    #2
    TTB has a great section on SIMPLE IRAs 13-17 to 13-19 to start. Employer/self-employed can set it up anytime through 1 October.

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      #3
      With no employees it's a simple process. I believe it can be set up fairly easily on sites such as Fidelity. If there are employees it's a little more complex such as keeping documentation that it is offered to all eligible employees. I personally will recommend client use an investment advisor unless client is somewhat sophisticated on investments.

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        #4
        Simple IRA's

        Remember there are 2 types of contributions to the Simple IRA. The employer contribution of 3% of everyone's salary (that is everyone who is in the plan) and each employees contribution (that is withheld from their paycheck, or a straight owners contribution). The Plan must be set up before year end. This plan allows Sch C businesses with low profit, say 15,000, to contribution and deduct close to 100% of the years profit (unlike SEP plans where the contribution is limited to 20% of the profit). Hope this helps.

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