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Employee Savings Match IRA (SIMPLE) from First Commercial Bank, N.A (USA)

Good for Your Business – and Your Employees

If you own a small business, offering a SIMPLE IRA (Savings Incentive Match Plan for Employees IRA) as part of your benefits package can help you attract and retain valuable employees.^†† You'll be able to accelerate your retirement savings beyond what is possible with other retirement plans like the Traditional IRA. Not only are the employee contribution limits much higher than other IRAs, you can also match 100% of your employees' contributions.

As with Traditional IRAs, SIMPLE IRA earnings grow tax-deferred until withdrawal at retirement.¹ What's more, you may even be able to contribute an additional "catch-up" amount of $500 if you're 50 or over.

Benefits for You, Your Business, and Your Employees:

• Tax-deferred earnings on accumulated interest²
• Contribution flexibility – both employers and employees can contribute to the account
• Contributions are tax deductible for employers
• No extra reporting to the IRS is necessary

1. Taxes are due on withdrawal at ordinary income tax rates. Withdrawals made before age 59½ may be subject to an additional 10% tax penalty.

2. May also be partially or fully tax-deductible, depending on whether individuals or their spouses are covered by another pension plan and how much income they earn.

3. Some states do not recognize the new contribution limits. Please consult a tax professional for details.

Requirements

To be eligible for a SIMPLE IRA, an employer must have 100 or fewer employees and have no other retirement plan. Each employee must maintain an employee retirement account in which contributions are funded. All contributions are generally tax-deductible to the employer.

Contributing to Your SIMPLE IRA

SIMPLE IRAs give employers and employees the flexibility to choose how much to contribute. You can match your employees' contributions or simply contribute a fixed amount to the account, whether or not your employees contribute.

Employees can still participate in a SIMPLE IRA program even if they already have, or want to open, a regular IRA.

Bank IRAs^†

• Offered through First Commercial Bank, N.A (USA)
• FDIC-insured accounts
• Fixed terms

Brokerage IRAs^††

Traditional IRAs are funded with tax deductable contributions in which any earnings are tax deferred until withdrawn. Roth IRAs are funded with non-deductible contributions, but as with Traditional IRAs, all earnings are tax deferred. Unless certain criteria are met, restrictions, IRS penalties and income taxes may apply on any withdrawals taken from IRAs prior to age 59½.