Commercial Retirement Programs
North Side Federal offers two retirement programs that allow for small businesses to contribute to IRAs in their employees' names.
Simplified Employee Pension
- Contributions are made by the business to owners and employees
- Contributions are deductible by the employer, within limits, and generally not taxable (until withdrawn) by the IRA owner
- Contributions can be made up to the lesser of $30,000 or 15% of each eligible employee's compensation (subject to IRS limits)
- The plan can be set up at any time up to the date on the employer's tax return
- Ideal for the small, closely-held business
- Both the employer and employees can contribute to employees' IRAs
- The employer makes "salary reduction" contributions to the plan which are generally not taxable (until withdrawn) by the IRA owner
- This plan must be set up by October 1 to be effective in that particular tax year
- Ideal for a business with more employees who wants to offer an easy, yet effective benefit plan
To learn more, please call us at 773-561-7051 or visit us at the corner of Clark and Foster in Chicago. For additional information, refer to our certificates of deposit, rates and disclosures, and terms and conditions.