Retirement

What is a SIMPLE IRA?
-A SIMPLE IRA (Savings Incentive Match Plan for Employees) is a retirement plan designed for small businesses, providing employees with a simple and effective way to save for retirement. Both employees and the company contribute to the plan, helping you build your retirement savings over time.

Key Features of Our SIMPLE IRA Plan:

• Eligibility:
  -You are eligible to participate in the SIMPLE IRA once you have completed the initial waiting period of 2 months. Your contributions will begin on the 1st of the month following the 2-month waiting period. (example: Hired on 8/15, contributions will begin on 11/1)

• Contributions:

  • Employee Contributions: You can contribute a percentage of your salary or a dollar amount to your SIMPLE IRA, up to the annual limit set by the IRS.

  • Contributions are made on a pre-tax basis, reducing your taxable income.

  • Current Contribution Limits for 2024: The contribution limits for the SIMPLE IRA are set by the IRS and may change annually.
    -Maximum yearly contribution: $16,000
    -Catch-up contributions for participants aged 50 and older are allowed an additional $3,500.

  • Company Contributions: Joe Gear Companies will match your contributions dollar-for-dollar up to 3% of your annual salary.

• Vesting: 

  • All contributions to your SIMPLE IRA (both yours and the company’s) are immediately 100% vested. This means the money is yours, and you can take it with you if you leave the company.

• Withdrawals:

  • You can withdraw funds from your SIMPLE IRA at any time, but please note that withdrawals made before age 59½ may be subject to a 10% early withdrawal penalty, in addition to regular income tax. If you withdraw funds within the first two years of participation, the penalty increases to 25%.

• Investment Options: 

  • You have the flexibility to choose how your SIMPLE IRA contributions are invested. Options typically include a variety of mutual funds, stocks, and bonds. It’s important to consider your risk tolerance and retirement goals when selecting your investments.

• Rollover Options:

  • If you leave Joe Gear Companies, you can roll your SIMPLE IRA over into another IRA or retirement plan. This allows you to continue growing your retirement savings tax-deferred.

How to Enroll:

• Enrolling in the SIMPLE IRA plan is easy! Here’s how to get started:

1. Review Your Options: Consider how much you want to contribute and review your investment options.

2. Complete the Enrollment Form: Fill out the SIMPLE IRA enrollment form, which can be obtained from the HR department or your general manager.

3. Submit Your Form: E-mail the completed form to HR@JoeGearCo.com or give to your manager

4. Talk to the Broker: Brent Stevens with New York Life will contact you by phone to determine your risk tolerance. Once that is complete, your account will be opened, and HR will set up your payroll deductions. **It is important to know that your account CAN NOT be opened without speaking to the broker.

Need More Information?

• If you have any questions or need more information, please don’t hesitate to contact the HR department. We’re here to help you make the most of your retirement savings opportunities. You may also reach out to Brent Stevens directly at 318-227-5056 or e-mail him at blstevens@eaglestrategies.com