SIMPLEs allow higher employee deferrals than most retirement accounts. Employees are only able to make salary reduction contributions.
As of 2016, they are able to defer up to $12,500 a year, but if an employee is over 50, they may defer an additional $3,000 as a “catch-up” contribution. However, an employee may choose not to contribute anything to their SIMPLE IRA.
Employers, on the other hand, are required to make either a dollar-for-dollar matching contribution of 3%, or a non-elective contribution of 2% of the employee’s pay. The 3% match can be reduced to 1% in two out of five years if employees are notified before they make contributions.
The match is based on actual compensation instead of a maximum considered compensation limit, such as $265,000, as in some retirement plans. As with other IRAs, equal treatment of employees is essential. The employer may choose the method for contributions, but each employee is entitled to the same conditions.
‘Buy to Cover’ is a term that applies when an investor buys shares of a security that they had previously sold short
The Equity Multiplier is a number used to compare companies, arrived at by dividing total assets by owner’s equity
Publication 503 covers tax deductions and filing guides for individuals who pay for childcare. Not the employer side
The Broadening Bottom pattern is formed when a stock price progressively makes higher highs and lower lows
Core mutual funds represent the middle ground between Value and Growth, but are not the same as Blend funds
Industry-specific funds attempt to capture the movements of a single industry. Industry-specific mutual funds will...
Payout options in the realm of annuities tend to be guaranteed by the insurance company providing the annuity
The Federal Housing Finance Association is the Conservator of Fannie Mae and Freddie Mac since the 2008 meltdown
The Foreign Credit Insurance Association protects American businesses from non-payment in international trade deals
Ethereum has a Turing-complete platform built into it that allows the blockchain to function like a large distributed computer