Windy City Media Group Frontpage News


home search facebook twitter join
Gay News Sponsor Windy City Times 2023-09-06



A retirement plan solution for small businesses: A simple IRA
by James E. Elvord and RBC Wealth Management

This article shared 2471 times since Wed Jul 3, 2013
facebook twitter google +1 reddit email

Are you a small business owner that has been contemplating establishing a retirement plan? Are you concerned about the administrative costs and headaches associated with running a 401(k)? If so, a Savings Incentive Match Plan for Employees (SIMPLE) IRA may be a plan to fit your needs.

A SIMPLE IRA is an IRA-based plan that gives small employers a simplified method to make contributions toward their employees' and their own retirement. Under a SIMPLE IRA plan, employees may choose to make salary-reduction contributions and the employer makes matching or non-elective contributions. All contributions are made directly to an Individual Retirement Account or Individual Retirement Annuity (IRA) set up for each employee. SIMPLE IRA plans are maintained on a calendar-year basis.

SIMPLE IRA plans may be established only by employers that had no more than 100 employees who earned $5,000 or more in compensation during the preceding calendar year (the "100-employee limitation"). For purposes of the 100-employee limitation, all employees employed at any time during the calendar year are taken into account, regardless of whether they are eligible to participate in the SIMPLE IRA plan.

Among the advantages of this plan is that it enables employees to make their own decisions on how much they wish to contribute and what funds they decide to place their contributions. That latter factor means that employers' liability for investment results is limited. Also, SIMPLE plans are easy to administer, with no complicated reporting requirements.

A SIMPLE IRA is a valuable addition to an employee benefit package. They give each employee the freedom to choose how much they wish to contribute to a retirement plan, up to $12,000 per year (or up to $14,500 for employees 50 or over) in 2013. All contributions are immediately vested and employees can access this money at any time, subject to the premature distribution penalty rules for SIMPLE IRAs.

Assets in a SIMPLE IRA can be invested in virtually any type of investment, including mutual funds, common stocks, corporate and government bonds, annuities and more.

There are two sources of contributions to a SIMPLE IRA—salary deferrals and employer contributions. Employees (including the owners) can defer up to $12,000 or 100 percent of wages (whichever is less). Employees who are age 50 or older can defer an additional $2,500 as part of the catch-up provision. Employers must match deferrals dollar for dollar up to 3 percent of compensation (this amount can be lowered to 1 percent in 2 out of 5 years) or employers must make a 2 percent non-elective contribution for all eligible employees.

The deadline for establishing a SIMPLE IRA is October 1 to allow for current-year contributions. Exception: If a new company comes into existence after October 1 of the year that the SIMPLE IRA plan is set up, then the deadline is as soon as administratively feasible but no later than December 31.

If you are a small business owner, there are some great opportunities to establish a retirement plan for your business. You save taxes while saving for your future. In addition, the availability of a competitive retirement plan is a key component considered as individuals seek employment.

There are a variety of retirement plan styles to choose from when establishing a plan for your business, each with their own set of benefits, administration requirements and costs. Selecting the right one is an important task, so it is important to do your home work. Talk with your investment and tax advisor about designing a retirement plan that best fits your needs and the needs of your employees.

This article is provided by James E. Elvord, AWM, a Financial Advisor at RBC Wealth Management in Chicago, and was prepared by or in cooperation with RBC Wealth Management. The information included in this article is not intended to be used as the primary basis for making investment decisions nor should it be construed as a recommendation to buy or sell any specific security. RBC Wealth Management does not endorse this organization or publication. Consult your investment professional for additional information and guidance. RBC Wealth Management does not provide tax or legal advice.

RBC Wealth Management, a division of RBC Capital Markets LLC, Member NYSE/FINRA/SIPC

James E. Elvord, AWM, Financial Advisor, RBC Wealth Mgmt., 312-559-1738 or 800-683-3246, .

This article shared 2471 times since Wed Jul 3, 2013
facebook twitter google +1 reddit email

Out and Aging
Presented By


Gay News

Nobody's Darling celebrates expansion into adjoining property with soft opening event 2023-09-24
- In the little over two years since its opening, Nobody's Darling in Andersonville has emerged as one of the premiere inclusive spaces to gather in Chicago. Nobody's Darling has become so successful that co-owners Angela Barnes ...

Gay News

19th annual Andersonville Arts Weekend Sept. 29 - Oct. 1 2023-09-20
--From a press release - CHICAGO (September 18, 2023) The Andersonville Chamber of Commerce (ACC) is pleased to welcome back its 19tn annual Andersonville Arts Weekend, with the neighborhood transformed into a "walkable art gallery" ...

Gay News

NATIONAL Historic political win, Columbus situation, trans coach, Gold + Williams 2023-09-08
- Fabian Nelson won a Democratic primary runoff in Mississippi's 66th state House district—and he's now the state's first openly gay legislator, The Guardian noted. (Republicans are not running a candidate for the general election sched ...

Gay News

SAVOR Crumbl franchise co-owner talks about the sweet business of cookies 2023-09-07
- When it comes to success stories in the world of sweets, few companies and brands can compare to Crumbl and its signature pink box. Started by Jason McGowan (CEO) & Sawyer Hemsley (COO) in 2017 in ...

Gay News

Openly gay football player Carl Nassib retiring at 30 2023-09-06
- On Sept. 6, openly gay free agent defensive end Carl Nassib announced his retirement from the NFL after seven seasons, Sports Illustrated reported. Nassib—who played for the Cleveland Browns, the Las Vegas Raiders and twice for ...

Gay News

Openly gay airline CEO resigns amid controversy 2023-09-05
- Alan Joyce, the openly gay CEO of Australian airline Qantas, has resigned after being accused of participating in illegal ticket sales, Reuters reported. Joyce, the company's head for 15 years, had been scheduled to retire in ...

Gay News

Can Chicago escape the 'urban doom loop?' 2023-09-04
- Prior to the COVID-19 pandemic, major U.S. cities were experiencing strong growth fueled by financial and technological sectors of the economy. COVID, however, caused a massive change in population migration and work behavior which has created ...

Gay News

Laura Ricketts-led group of diverse investors buys Chicago Red Stars in $60 million deal 2023-09-01
- From an Sept. 1 press release: A diverse investor group led by Laura Ricketts and prominent Chicago women business and civic leaders has officially taken ownership of the Chicago Red Stars National Women's Soccer League ...

Gay News

SAVOR Japanese-inspired brunch, Jose Andres, cake decorating and more 2023-08-28
- Itoko, a Japanese restaurant courtesy of Chef Gene Kato and BOKA Restaurant Group that's at 3325 N. Southport Ave., is debuting its weekend brunch at 10:30 a.m.-2 p.m. Brunch is centered around Japanese-inspired dishes such as ...

Gay News

LGBT Chamber of Commerce holds 15th NetWERQ Cruise 2023-08-22
- On the evening of Aug. 21, the LGBT Chamber of Commerce of Illinois held its 15th annual networking and fundraising event NetWERQ on Lake Michigan. Members of the group boarded the cruise ship Spirit of Chicago ...

Gay News

Calif. store owner killed over Pride flag display 2023-08-21
- In California, Cedar Glen business owner Laura Ann Carleton was shot and killed after a dispute over the Pride flag she'd displayed outside her shop, The Advocate reported. Authorities received a report that someone had been ...

Gay News

Man pleads guilty to hate crime at UpRising Bakery 2023-08-17
- Alsip, Illinois resident Joseph I. Collins, 25, pled guilty on Aug. 16 to committing a hate crime last summer at UpRising Bakery and Cafe, a Lake in the Hills business that was preparing to host a ...

Gay News

Chicago Cubs co-owner Laura Ricketts to purchase Red Stars 2023-08-16
- An investor group headed by out lesbian Chicago Cubs co-owner/Chicago Sky minority owner Laura Ricketts reached an agreement to purchase the NWSL's Chicago Red Stars, according to ...

Gay News

SAVOR Fulton Market taqueria Tacombi; upcoming events 2023-08-13
- The Fulton Market district of Chicago (just west of the Loop) has changed significantly over the past several years—and is altering more every day, with sleek and new office towers, condos and businesses populating the area. ...

Gay News

Law will reduce barriers to gender-neutral multiple-occupancy restrooms in businesses, universities, building 2023-08-12
--From a press release - CHICAGO — Advocates celebrated Governor JB Pritzker's signing of House Bill 1286, legislation that will reduce barriers for businesses serving their communities and customers by allowing for the adoption of ...


Copyright © 2023 Windy City Media Group. All rights reserved.
Reprint by permission only. PDFs for back issues are downloadable from
our online archives.

Return postage must accompany all manuscripts, drawings, and
photographs submitted if they are to be returned, and no
responsibility may be assumed for unsolicited materials.

All rights to letters, art and photos sent to Nightspots
(Chicago GLBT Nightlife News) and Windy City Times (a Chicago
Gay and Lesbian News and Feature Publication) will be treated
as unconditionally assigned for publication purposes and as such,
subject to editing and comment. The opinions expressed by the
columnists, cartoonists, letter writers, and commentators are
their own and do not necessarily reflect the position of Nightspots
(Chicago GLBT Nightlife News) and Windy City Times (a Chicago Gay,
Lesbian, Bisexual and Transgender News and Feature Publication).

The appearance of a name, image or photo of a person or group in
Nightspots (Chicago GLBT Nightlife News) and Windy City Times
(a Chicago Gay, Lesbian, Bisexual and Transgender News and Feature
Publication) does not indicate the sexual orientation of such
individuals or groups. While we encourage readers to support the
advertisers who make this newspaper possible, Nightspots (Chicago
GLBT Nightlife News) and Windy City Times (a Chicago Gay, Lesbian
News and Feature Publication) cannot accept responsibility for
any advertising claims or promotions.






About WCMG      Contact Us      Online Front  Page      Windy City  Times      Nightspots
Identity      BLACKlines      En La Vida      Archives      Advanced Search     
Windy City Queercast      Queercast Archives     
Press  Releases      Join WCMG  Email List      Email Blast      Blogs     
Upcoming Events      Todays Events      Ongoing Events      Bar Guide      Community Groups      In Memoriam     
Privacy Policy     

Windy City Media Group publishes Windy City Times,
The Bi-Weekly Voice of the Gay, Lesbian, Bisexual and Trans Community.
5315 N. Clark St. #192, Chicago, IL 60640-2113 • PH (773) 871-7610 • FAX (773) 871-7609.