Deadline is October 1st.
If you are looking to set up a SIMPLE IRA for your business in 2017, the deadline to do so is October 1st. All new plans must be set up by October 1st to be used and funded in 2017. Using a SIMPLE IRA will allow you to make both Employee (EE) contributions, along with Employer (ER) contributions.
- Employee contributions can be up to $12,500 for 2017. The employer contributions may vary slightly, but would generally be about 3% of wages to all eligible employees.
Deadline to fund the plan.
- Employee contributions – must be withheld from pay by December 31st and remitted to the investment firm as soon as reasonably possible
- Employer contribution – must be made by the tax return due date, including extensions
Business by Design does not set up these plans or provide financial advice, however, we do want to be sure you are aware of the deadline.