True cost for a SIMPLE IRA plan

Sample Your Company
SIMPLE IRA cost $400 $
IRS tax credit* ($200) ($)
Sub total $200 $200
Tax Bracket 28% %
Tax Deduction ($56) ($56.00)
Total Cost $144 $144.00

Your annual cost for a

SIMPLE IRA

$144.00

Looking to pay less in taxes and save more for retirement?

If you own a small business - The SIMPLE IRA plan presented by ADP is your solution. With a SIMPLE IRA you can:

  • Reduce current taxes
  • Receive a tax credit*
  • Deduct contributions as a business owner
  • Allow earnings to grow tax deferred
  • Increase employee satisfaction

*Tax credit - Check with your accountant to see if you qualify for this credit.

Owner TAX SAVINGS

Sample Your Tax Savings
Save up to $12,500 Pre-Tax* $12,500 $
Your Salary $100,000 $
Your company match % 3% %
Your company match dollars $3,000 $3,000
Total Pre-Tax Contribution $15,500 $14,500
Your Tax Bracket 28% %
Pre Tax Bracket $4,340 $4,340

For the Cost of

You can save

$180

$4,340.00

in Federal taxes

ADP helps simplify everything for you:

  • Flexible prototype plan document at no extra charge
  • ADP will assist you with setting up the plan, payroll deductions and calculating your match
  • Minimal administration effort on your part
  • A variety of funds offered

*Participants who are 50 or older at any point during the calendar year may make an additional catchup contribution of $3,000 for a maximum total of $15,500.

Do you know how much you will need in retirement?

It’s important to invest for your retirement dreams to come true. This chart can help you forecast amounts you can save – and see the potential difference a small monthly contribution to your retirement account may have.

See Contribution Rate: %


Click here for explanation of assumptions used in the table.

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This chart is for illustrative purposes only. The hypothetical illustration assumes pre-tax contributions made at the beginning of each month, reinvestmentof earnings and the various annual effective rates of return listed. Results are not meant to represent the past or future performance of any specificinvestment vehicle. Investment return and principal value will fluctuate and, when redeemed, the investment may be worth more or less than its original cost. Taxes are due upon withdrawal. Withdrawals taken prior to age 59½ may be subject to a 10% tax penalty. A plan of systematic savings does not ensure a profit or prevent a loss in a declining market. Actual payments may vary in amount. ADP Broker-Dealer, Inc., ADP, LLC., and their affiliates (ADP) do not provide investment, financial, legal or tax advice, and nothing contained in this communication is intended tor should be construed as such. Questions about laws, regulations and guidance applying to a specific plan should be directed to your plan administrator or legal or tax advisor. Nothing in these materials s intended to be, nor should be construed as, advice or a recommendation for a particular situation or plan. ADP, the ADP logo and In the Business of Your Success are registered trademarks of ADP, LLC. All other trademarks and service marks are the property of their respective owners. Copyright © 2014 ADP, LLC. 0514CS 99-3492