Welcome to the
Lance Hocutt Financial Group!
We are excited to serve the team at Puddle Jumpers, LLC with a Simple IRA.
What is a Simple IRA:
This article is for informational purposes only, so make sure to consult your tax, legal, and accounting professionals before implementing or modifying a retirement plan.
SIMPLE-IRAs. SIMPLE stands for Savings Incentive Match Plan for Employees. This is a traditional IRA that is set up for employees and allows both employees and employers to contribute. Employees can choose to make salary reduction contributions to their own retirement account. In addition, H&R Electric, LLC has chosen to offer a 3% matching contribution to the SIMPLE IRA.
Distributions from SIMPLE-IRAs are taxed as ordinary income, and if taken before age 59½, may be subject to a 10% federal income tax penalty. Generally, once you reach age 73, you must begin taking required minimum distributions.
How does a SIMPLE IRA plan work? (sourced from IRS.gov: https://www.irs.gov/retirement-plans/plan-sponsor/simple-ira-plan)
Elizabeth works for the Rockland Quarry Company, a small business with 50 employees. Rockland has decided to establish a SIMPLE IRA plan for its employees and will match its employees' contributions dollar-for-dollar up to 3% of each employee's compensation. Under this option, if a Rockland employee does not contribute to his or her SIMPLE IRA, then that employee does not receive any matching employer contribution.
Elizabeth has a yearly compensation of $50,000 and contributes 5% of her compensation ($2,500) to her SIMPLE IRA. The Rockland matching contribution is $1,500 (3% of $50,000). Therefore, the total contribution to Elizabeth's SIMPLE IRA that year is $4,000 (her $2,500 contribution plus Rockland's $1,500 contribution). The financial institution holding Elizabeth's SIMPLE IRA has several investment choices and she is free to choose which ones suit her best.
We are recommending the Capital Funds Group American Funds Simple IRA turn key plan. After enrollment, you will have access to their online portal and local advice from the Lance Hocutt Financial Group in Tuscaloosa, AL.
Step 1: Client Information Smart Form:
Note: Please complete the Client Information Smart Form (CISF) if you have not already completed. If you have completed the CISF, skip this step and move to Step 2 below.
Step 2: Send e-mail
Send an e-mail to Lance@lancehocutt.com if you would like to participate in the Puddle Jumpers, LLC Simple IRA.
- Please include a beneficiary (name of the person(s) you would like to receive the account in the event of your passing. You will need their address, date of birth and social security number for the account.
- Please indicate your deferral percentage (i.e. 3%) in the e-mail.
Upon receipt of your indication of participation in the plan, we will prepare and e-mail (through DocuSign) all documents required for the account to be opened.