Payroll Deducted IRA
Effortless Retirement Savings for Small Businesses: Simplify Employee Benefit Offerings with Payroll Deducted IRAs.
What is a Payroll Deducted IRA
A Payroll Deducted IRA serves as a straightforward and manageable entry point for small businesses not yet prepared for a more complex retirement plan.
These IRAs allow employees to kickstart their retirement savings through simple payroll deductions, offering an easy-to-implement solution for employers.
This retirement plan is a suitable stepping stone for companies that want to offer a retirement benefit but aren’t ready to commit to a more complicated plan like a 401(k) or Simple IRA.
Contribution Limits:
- Employees can contribute up to $6,500 for 2023, and $7,000 for 2024.
- An additional $1,000 catch-up contribution is available for employees age 50 and older.
- Employer match or contributions aren’t available.
Eligibility:
- Employer Requirements: Any business that wants to offer a low-cost, easy-to-manage retirement benefit.
- Employee Requirements: All employees receiving a paycheck from which deductions can be made are eligible.
Let’s Start
With A Proposal
Easy as 1,2,3.
Easy setup and administration.
Perfect as a place holder, the Payroll Deducted IRA will give your employees the feel of a larger plan with payroll deduction, but without the administration and matching requirements.
Who Should Consider a Payroll Deducted IRA.
Small Businesses Seeking an Easy Entry into Retirement Benefits.
For small businesses looking for an uncomplicated way to offer retirement benefits to employees, a Payroll Deducted IRA is an ideal choice. It provides a low-cost, hassle-free solution that’s simple to implement.
Benefits to Employers:
- Requires minimal administrative effort.
- Demonstrates a commitment to employee financial well-being.
Companies Not Ready for Comprehensive Retirement Plans.
Businesses that are not yet prepared for the administrative complexities of higher-level retirement plans like 401(k)s or Simple IRAs can benefit from offering Payroll Deducted IRAs. It’s a simple, cost-effective way to introduce retirement benefits to employees.
Benefits to Employers:
- Provides a starter plan to attract and retain employees.
- Prepares businesses for potential growth into more comprehensive retirement benefits in the future.
Startups and Newly Established Businesses.
For startups and newly established businesses looking for a cost-effective way to provide retirement benefits to their workforce, a Payroll Deducted IRA can be a wise choice. It allows these businesses to establish a financial wellness culture from the beginning.
Benefits to Employers:
- Minimal upfront costs.
- Simple implementation that aligns with the company’s growth trajectory.
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Other Plans To Consider
Consider exploring alternative plan options that could also suit your needs, in addition to the Payroll Deducted IRA.
Most Popular 
Safe Harbor 401(k)
Select from pre-approved matching and vesting schedules to simplify compliance requirements.
Traditional 401(k)
Tailor your matching and vesting schedules to align with your budget and safeguard your cash flow.
Simple IRA
Opt for a hassle-free plan that minimizes administration, ideal for small businesses looking for simplicity and ease.