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I was backlogged on reading the posts here, but wanted to respond. I want to be sure you are understanding the Simple IRA, the same way I am. You say His company will match 3% of contributions.

What I hope you meant to say was that the co. would match dollar for dollar, up to 3% of husbands salary, with a $6000 cap on contibutions by husband. That is what I understand to be an option the co. has under this plan.

Having said this, this is GREAT deal. Example: husbands salary $40,000, he contibutes $1200., co matches 3% of salary ie $1200, $2400 total. This is at least a 100% gain, figuring in husbands $1200 is not counted in for yearly Federal income Tax.

I have been a Simple plan for 2 years now, and I suggest that anyone contribute at least up to the 3% match level and get that "free money."

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