Retirement Services

Simple IRA

A retirement plan for organizations with fewer than 100 employees, Simple IRAs allow employees to contribute pre-tax and requires your business to make either matching contributions or a non-elective contribution for all eligible employees.

Advantages
  • Minimal paperwork and expense
  • Participant deferral of current income taxes
  • More flexibility with contribution amounts due to increase in deferral limit
Eligibility
  • All taxable businesses, government entities and tax-exempt organizations may establish SIMPLE IRA plans
  • Any employee earning $5,000 during any two preceding years and who is expected to earn $5,000 in the current year must be covered; exclusions are permitted for certain employees
Maximum annual participant deferral (cannot exceed 100% of pay)

$12,500; catch-up contribution of $3,000 if age 50 or older

Required employer contribution:

Dollar-for-dollar match up to 3% of pay1, or 2% of gross pay up to $265,000 for all eligible participants who earn at least $5,000 during the year

 

Drop in one of our branch locations or call our One Call Center at (800) 827-4522 for more information or to open an account.

 


1 Match may be reduced to as low as 1% for two of the five years.

 

Investment products are not deposits or obligations of, or guaranteed by Lake City Bank or any other bank, are not insured or guaranteed by the FDIC or any governmental agency and are subject to investment risks, including possible loss of principal invested. Past performance is not a guarantee of future results.

You are about to leave our site.

By following this link you are leaving Lake City Bank's website. Lake City Bank is not responsible for the content, links, privacy or security of the website you are going to.