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Subject:  SIMPLE IRA Help Date:  1/17/1998  5:43 PM
Author:  draggon Number:  1348 of 88825

Hi there! Glad ya stopped by... You wouldn't be here if you didn't have some clue what a SIMPLE was, so hopefully you might be willing to help me out. My wife has her own S-Corp and is currently maxing out the funding of an SEP-IRA. An SEP is funded entirely by the corporations money, but is entirely in my wife's name.

Due to keeping her salary at a reasonable level (to save a little on FICA) it would behoove us to start up a SIMPLE IRA because of the higher contribution allowed. I understand the basics of the SIMPLE, i.e. each individual employee (she's the only one) is allowed to defer up to $6000 of their salary into the plan. The company then has the option of dollar-matching between 1 and 3% of the participant's salary or of contributing a flat 2%.

I plan on being the "investment advisor" of this plan (i.e. self-directed, through me, the loving husband). I've received some information from a couple of online discount brokerages that I'm interested in, but I have some questions about the information that they are requiring from me, and the actual physical setting up of the accounts. They make it sound like I will need 2 accounts, one for the company and one for the participant. Is this really how it works, or am I misunderstanding something about it?

I am also looking for tips on how to track the SIMPLE payouts from my wife's deferred salary in Quicken '98. Before this message gets outrageously long, I think I'll just end it here and see if it generates any interest. If so, I will elaborate on my other questions then.

The standard disclaimer applies, i.e. I'm fairly new to TMF and have tried to keep up with most of what goes on, but as with everyone else, my time is limited so I've probably missed some important discussions on SIMPLES. If so, and you know where I can find them, please feel free to point me to any online resources.

Thanks a million, you fools! I'm gonna be rich someday, how about you?

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