|General Description||As an employer, you can offer a salary deferral plan for your employees easily and affordably. |
A SIMPLE IRA allows you to offer a salary deferral plan minus the cost or administrative responsibilities associated with traditional 401(k) plans.
|Eligibility to Contribute|
|Maximum Annual Contribution|
|Taxation of Earnings and Withdrawals||Tax-deductible contributions and earnings are taxed as ordinary income when withdrawn.|
|Types of Investments||Stocks, bonds and mutual funds available through a Wells Fargo Advisors brokerage account.|
|Withdrawal Penalties||25% IRS early withdrawal penalty if withdrawn during the first two years after the SIMPLE IRA is opened. After that, 10% early withdrawal applies before age 59 ½ unless exception applies.|
|Required Withdrawals||Must begin at age 70 ½.|
|Deadline to Set Up and Fund|
|Commissions and Fees||Varies by account and investment option.|
Learn more about saving for retirement; contact a Wells Fargo financial professional today!
Wells Fargo Advisors1-877-493-4727
Brokerage products and services including WellsTrade are offered through Wells Fargo Advisors. Wells Fargo Advisors is the trade name used by two separate registered broker-dealers: Wells Fargo Advisors, LLC and Wells Fargo Advisors Financial Network, LLC, (Members SIPC), non-bank affiliates of Wells Fargo & Company.
Financial Advisors are registered representatives of Wells Fargo Advisors LLC, member SIPC, a non-bank affiliate of Wells Fargo & Company.
Wells Fargo Advisors, LLC (Member SIPC) does not provide tax or legal advice. Please see your tax and legal advisors to determine how this information may apply to your own situation.
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