The Merrill Edge Advantage
Choose from a SEP IRA or SIMPLE IRA. Merrill Edge can help you find the option that might be right for your small business.
Take a look at some of the features of each option:
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SEP IRA |
SIMPLE IRA |
For corporate employers, self-employed, sole proprietorships, partnerships, non-profits * |
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Both the employer and the employee make contributions |
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No employer contributions required |
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Contributions are immediately vested** |
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Contributions are generally tax deductible by the business |
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No IRS Form 5500 filing is required *** |
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Need more details before you decide?
*Employers with 100 or fewer employees who earned $5000 or more during the preceding calendar year may consider a SIMPLE IRA plan.
**The term vesting refers to whether or not the money that has been set aside for you in a retirement plan is yours to keep if your employment is terminated. "Vested" benefits are those to which you have an absolute right even if you resign or are terminated.
*** IRS Form 5500 is a form that 401(k) plans use to satisfy reporting required by law. Small business IRA plans do not file IRS Form 5500. Contributions made by a business owner to a SEP or SIMPLE are claimed as a deduction by the business owner on his/her business tax returns. See IRS Publication 560.
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