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Greetings, Duke, and welcome. You asked:

<<My brother and I own a C-Corporation with two other employees. I was in the process of setting up a SIMPLE-IRA plan through Fidelity. I thought this was the best plan for our current situation because this plan allows us to contribute $6,000 plus the 3% the company will match.

Flying through cyber space investigating what may be the best for us, I landed in this community called Fooldom. Being here in Fooldom for weeks now, I found that the Fools share in their experiences and knowledge to help those, (me), that have many questions or an interest to handle their own financial future. Many of my questions have been answered, Thank you!

1. Is there a better retirement option for a C-Corp.?
Salaries in the 30k's, so with the SIMPLE plan we have the greater amount to contribute to retirement.>>

"Better" is in the eyes of the beholder. Virtually any type of retirement plan is open to you as a C Corporation. Which should be used depends on a number of factors such as the ages of you and your employees; your desire to benefit employees; the present and future profitability of your firm; corporate and personal income taxes; and what you wish to achieve with a retirement plan. You may find a brief description of most of the various types of plans available to you in my Foolish Retirement Plan Primer at . All have their advantages and disadvantages, so it really boils down to how generous you wish to be as an employer and how eager you are to avoid taxation.

<<2. If I invest a self directed SIMPLE-IRA foolishly, or invest the same amount at my current tax bracket of 15% and pay the capital gains tax each year. Would I be futher ahead 20 years down the road? (Upon a death in the family I'll be in a higher tax bracket.) Please direct me to formulas or help me compute the taxes. I believe that I read something pertaining to this in Fooldom, but I can't find it now. $6,000 yearly @ 20% (foolishly) compounded for 20 years should be over 1.3 mil.>>

You may find one approach to do this calculation in Step 4 of my 13 Steps to Foolish Retirement Planning available at the same link as above.

<<3. If I set up a self-directed SIMPLE-IRA with my discount broker. Do the other employees have to use the same discount broker or can they direct theirs to Fidelity (or other firms)? I believe they can choose whomever they want. If this is the case, then I'll have to send their withholdings to different firms each week. Oh just what I wanted more paper work.>>

You may use a designated financial institution to receive the SIMPLE contributions for your employees. That's your choice as the employer. The employees, though, will have the ability to move those contributions to another SIMPLE-IRA without cost or penalty.

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