Today we're gonna talk about this simple IRA if you're a small business owner that wants to reduce taxes offer a retirement plan increase employee retention and wants to control the costs of the bottom line this video is for you if you're new to our channel or haven't subscribed be sure to click on the bell at the bottom my name is Travis sickles certified financial planner with sickled hundred financial advisors the simple IRA stands for savings incentive match plan for employees IRA individual retirement account this is one of the simplest retirement accounts that you can open up for your small business because there's not a whole lot of filing documents required it's actually only one of two it's the 5305 - simple or the 5304 - simple one of the two that you need to fill out in order to start the plan the simple IRA contributions are pre-tax so they're actually going to reduce your overall tax liability as an employer or an employee you can contribute up to twelve thousand five hundred if you're under the age of 50 and if you're 50 or older you can contribute an additional three thousand think they call it a catch-up contribution and that's going to be three thousand in addition to the twelve thousand five hundred so a total of fifteen thousand five hundred into the simple IRA in 2023 this simple IRA has two ways of employer contributions into the plan and this is decided when you start the plan the first way is looking at the two percent non elective contributions and what this is is two percent whether or not the employee contributes on their side at all so if the employee makes fifty thousand dollars and you have a 2% non-elective on...
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Simple ira 2023 Form: What You Should Know
Form 8949 is a report created by the IRS, is generally used by the IRS to pay the IRS for collecting tax payments. Because if you want to withdraw money from your SIMPLE IRA, it must be done through a tax professional who agrees to report your withdrawal to the IRS via Form 8949. So you must do your own taxes first, which is fairly low and the process, while not quite foolproof, is fairly straightforward. If you aren't sure you are eligible to cash out at a tax professional, please feel free to contact us. ∎ The IRS rules for an individual's SIMPLE IRA withdrawal do not change with your tax form (1099-R). You pay taxes on the amount of money you withdraw, which in this case is the full amount of money you have set aside. Therefore, if you have over-contributed through Roth IRA, traditional IRA, or SEP-IRA, the value of the money you have set aside on your SIMPLE IRA will be taxed. For example, in order to withdraw 25,000 from your Traditional IRA (50,000 if you're 50+), you would still have to pay taxes on 25,000, not the value of the tax-free IRA withdrawals. In this situation you would only have to pay the tax of the balance due, and you do not Roth IRA contributions are tax deferred. These are the tax-deferred portion of a traditional IRA which can only be withdrawn once the Roth IRA account has been opened. They are not taxed if you take out money in a taxable account. They are, however, taxed if you withdraw money in a taxable account and your Roth IRA is less than six years old. Thus, your Roth IRA is more valuable to the IRS than cash that is withdrawn for a retirement in retirement. (See also IRS Notice 2007-31) If you want to withdraw your SIMPLE IRA money, you may do so as a penalty or for a specific financial purpose or in contributions to a Roth. There are two ways to withdraw your SIMPLE IRA money.
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Video instructions and help with filling out and completing Simple ira 2023
