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I work for a small business (three of us total including the president) and we are in the process of selecting a tax-deferred savings plan of some sort, a la 401K.

Presently we are considering the SIMPLE IRA most seriously as it seems to have less overhead associated with it, especially with so few employees. My concern is the ceiling is significantly lower than the 401K ceiling (6K vs 10.5K ?).

- I want to maximize my contributions
- The president wants to minimize overhead
- He is also willing to make employer contributions (which I believe the SIMPLE IRA requires anyway).

I personally contribute to a ROTH IRA, starting last year.

Does anyone have any words of wisdom as to whether or not my goal of maximizing contributions is the wisest approach (I would like to retire early if possible, one day and I have separate after tax investments).

Does anyone know if there might be an affordable 401K plan for such a small company (or perhaps some other plan that we are not considering).

Separately, I personally have a 457 plan with a previous employer, and as I understand it I must leave that where it is (the plan allows for continuing management/allocation, etc.,... but no future contributions). I think this plan will actually allow IRS penalty-free withdrawals starting before 59.5. Anyone know if I should bother this?

Thanks for your assistance.


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