Employee Savings Match IRA (SIMPLE)
Accelerating Your Employees' Retirement Goals

If you own a small business, having a SIMPLE IRA (Savings Incentive Match Plan for Employees IRA) as part of your benefits package can help you attract and retain valuable employees.††† You and your employees will have the ability to accelerate your retirement savings beyond what is possible with other retirement plans like the Traditional IRA. Not only are the employee contribution limits much higher than other IRAs, but you can match 100% of your employees’ contributions.

As with Traditional IRAs, SIMPLE IRA earnings grow tax-deferred until withdrawal at retirement.1 What’s more, you may even be able to contribute an additional “catch-up” amount of $500 if you’re 50 or over.

	Highlights Below > Benefits Your Business Will Receive > Fast Facts > Requirements > Contributing To Your SIMPLE IRA > IRA Options

Benefits Your Business Will Receive

• Tax-deferred earnings on accumulated interest2
• Contribution flexibility — both employers and employees can contribute to the account
• Contributions are tax deductible to employer
• Helps attract and retain employees
• Low cost alternative to a 401(k) plan
• No extra reporting to the IRS is necessary

	Fast Facts
	Tax Year IRA Contribution Employee Contribution Limits3 • 2005 and beyond • $10,000 (plus potential cost-of-living increases in $500 increments beginning in 2006) Catch-up Contributions3 • 2005 • 2006 and beyond • $2,000 • $2,500 Employer Matching Limits3 • 2005 and beyond • 100% match of up to 3% of income • Or a flat contribution of 2% of income.

1. Taxes are due on withdrawal at ordinary income tax rates. Withdrawals made before age 59½ may be subject to an additional 10% tax penalty.
2. May also be partially or fully tax-deductible, depending on whether individuals or their spouses are covered by another pension plan and how much income they earn.
3. Some states do not recognize the new contribution limits. Please consult a tax professional for details.

Requirements

To be eligible to set up a SIMPLE IRA, an employer must have 100 or fewer employees and have no other retirement plan. Each employee must maintain an employee retirement account in which contributions are funded. All contributions are generally tax-deductible to the employer.

Contributing to Your SIMPLE IRA

SIMPLE IRAs give both you, as an employer, and your employees the flexibility to choose how much you each contribute. You can match your employees’ contributions or simply contribute a fixed amount to the account, whether or not your employees contribute.

Employees can still participate in a SIMPLE IRA program even if they already have, or want to get, a regular IRA.

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IRA Options

In addition to our non-FDIC-insured retirement IRAs, you may select from FDIC-insured investments.

	Bank IRAs† Offered through American Savings Bank FDIC-insured accounts Fixed Term Available through branches
	Brokerage IRAs††† Offered through UVEST Financial Services Non-FDIC-insured investments, i.e., mutual funds and annuities