In the term SIMPLE IRA, SIMPLE is an acronym for Savings Investment Match Plan For Employees and is used to describe a type of retirement plan designed for businesses with 100 or fewer employees, notes Investopedia. The plans are considered simple because they involve minimal paperwork by administra
IRA contribution limits are set by the IRS. For 2014 and 2015, the total maximum contribution for all of an individual's traditional and Roth IRAs is $5,500 if under age 50 and $6,500 if age 50 or older, according to the IRS.
Anyone who has taxable income can contribute to an IRA, according to Charles Schwab. Taxable income may come from wages, tips, disability benefits, benefits from a union strike or self-employment income.
The Internal Revenue Service and personal financial websites such as Bankrate and The Simple Dollar are resources for choosing the best individual retirement account. Important considerations are if funds are taxed before or after contributing, account minimums, trading commissions and transaction f
Basic guidelines on the rules for Roth IRA plans are available from the website of the Internal Revenue Service. The site details information on contribution limits for those filing jointly, separately or as a head of household.
The limits on IRA and 401(k) plans are based on the inflation-adjusted maximum annual contributions the plans allow, reports the IRS. As of 2015, the annual contribution limit for an IRA is $5,500, while for a 401(k), it is $18,000. Both types of plans allow additional catch-up contributions for tho
The biggest difference between a traditional IRA and a Roth IRA is when taxes are paid on the funds saved, states CNN. With a traditional IRA, income taxes are generally paid when money is withdrawn. A Roth IRA it is typically the opposite, as taxes are paid at the outset.
A SEP and a Simple IRA have several differences in their investment rules. One major difference is that employers are the sole funding source for SEPs, while both employers and employees can contribute to a Simple IRA, according to Charles Schwab.
The main advantage of a SIMPLE IRA is that it gives employers more flexibility with matching contributions. The two plans are largely similar, and both are easy and inexpensive to maintain; they only differ in a few features, notes Investopedia.
Individuals that qualify for a Roth IRA must have earned income in the form of either wages or small business profits. The earned income must not exceed the limits set by the federal government for Roth IRA account holders.