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Article: A SIMPLE CHOICE FOR SMALL FIRMS.(pros and cons of the SIMPLE IRA)(Brief Article)
- Article from:
- Kiplinger's Personal Finance Magazine
- Article date:
- October 1, 2000
- Author:
CopyrightCOPYRIGHT 2000 The Kiplinger Washington Editors, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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RETIREMENT SAVINGS | A new way to set aside $6,000 A YEAR. But you'd better hurry.
DAVE JACOBS wanted to offer his employees a retirement plan but didn't want the hassle and expense of setting up a 401(k). "The paperwork, the administrative burden, the discrimination testing, the overhead--it was just too much for a company my size," says Jacobs, president of MetroCellular, a Seattle firm with 23 employees.
Last year, he stumbled on a solution: a SIMPLE IRA. This low-maintenance 401(k) alternative for firms with 100 or fewer employees (or even just one if you work for yourself and have no employees) is relatively new and relatively unknown. If you want ...