Simple IRA offered by new employer

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Simple IRA offered by new employer

Postby hotscot » Fri Aug 30, 2013 8:47 pm

I'm considering a job offer from an employer that only offers a Simple IRA, which has much lower contribution limits than a 401K.
Is there any other tax deferred mechanism I can use?
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Re: Simple IRA offered by new employer

Postby LadyGeek » Fri Aug 30, 2013 8:50 pm

This thread is now in the Personal Finance (Not Investing) forum (retirement plans).
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Re: Simple IRA offered by new employer

Postby JW Nearly Retired » Fri Aug 30, 2013 9:05 pm

hotscot wrote: I'm considering a job offer from an employer that only offers a Simple IRA, which has much lower contribution limits than a 401K.
Is there any other tax deferred mechanism I can use?

You can also contribute to a traditional or Roth IRA in addition to the SIMPLE IRA. That makes for a total maximum in tax advantaged of $12000 +$5500 + some level of employer matching contributions. Not as good as a maxed out 401k contribution ($17,500 + matching) +IRA, but still very worthwhile.
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Re: Simple IRA offered by new employer

Postby hotscot » Fri Aug 30, 2013 9:37 pm

Thanks. I've been contributing after tax to my Roth anyway, I suppose I'll now be able to claim tax back.
It's just frustrating that now I'm in my 50's a 401k plus catch up is a wonderful way to save for retirement.
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Re: Simple IRA offered by new employer

Postby Carl53 » Sat Aug 31, 2013 6:35 am

OP, check with your plan administrator. The IRS allows Simple IRAs to offer catch up employee contributions of $2500 for employee attaining the age of 50. It is my understanding that they are not required to do so.
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Re: Simple IRA offered by new employer

Postby SteveB3005 » Sat Aug 31, 2013 4:07 pm

It's always the total return, in portfolios, in work, in life. If the job is to your liking and the pay reasonable, there are worse things than having part of your portfolio in taxable accounts. Sometimes there's even advantages to holding equities there.
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Re: Simple IRA offered by new employer

Postby joe8d » Sat Aug 31, 2013 10:08 pm

SteveB3005 wrote:It's always the total return, in portfolios, in work, in life. If the job is to your liking and the pay reasonable, there are worse things than having part of your portfolio in taxable accounts. Sometimes there's even advantages to holding equities there.


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Re: Simple IRA offered by new employer

Postby JamesSFO » Sat Aug 31, 2013 10:21 pm

Also if you are earning enough to max out $17.5 + 5.5 you can still save it OUTSIDE of retirement accounts. VG Total Stock fund is quite tax efficient.
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Re: Simple IRA offered by new employer

Postby pennstater2005 » Sun Sep 01, 2013 9:55 pm

Also remember that if your Simple IRA fund options aren't very good you can, after two years, roll it over to an outside firm. I do this with my wife's Simple IRA twice a year.
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Re: Simple IRA offered by new employer

Postby nirvines88 » Mon Sep 02, 2013 4:11 pm

IRA, HSA, FSA, I-bonds, EE bonds, 529s, and I'm sure there's others I'm forgetting!
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