An employee retirement savings plan for business owners with 100 or fewer employees, SIMPLE IRA Plans require contributions from both the employer and employee. A SIMPLE IRA is set up for each employee, and the employee determines the investment.
Employers must either match employee contributions up to a maximum 3% of salary (maximum match $6,600), or contribute 2% of compensation for all eligible employees. Employees can set aside up to $10,000 (as of 2006).
- Personalized service – First Tennessee will help you with paperwork
- Employees can direct their own investments
- Well-known mutual funds
- Administrative costs are low compared to other types of plans
- Easy to set up
- The account is portable, so the employee keeps the IRA even if they change jobs
- Not a Deposit
- Not Guaranteed by the Bank or its Affiliates
- Not FDIC Insured
- Not Insured by Any Federal Government Agency
- May Go Down in Value
Investments available through First Tennessee Brokerage, Inc., member FINRA, SIPC, and a subsidiary of First Tennessee Bank National Association.
The Securities and Exchange Commission requires broker-dealers to publish certain order related data. Click here to view this data as required by Rule 606.
First Tennessee does not offer tax or legal advice. You should consult your tax and/or legal advisor regarding your individual situation.