DEADLINE: Switching from a SIMPLE IRA plan to a 401k

So here are the numbers for 2015: If a company currently has a SIMPLE IRA plan, the employee can defer up to $12,500/yr., plus an additional $3,000 if they are over age 50. The employer can choose to make a 2% non-elective contribution (more about this at the IRS website ) or match employee contributions, up to 3% of compensation

SIMPLE IRA Summary: The absolute maximum combined employer and employee contribution is $31,000

In a variation of a 401k plan, you can defer up to $18,000,  plus an additional $6,000 if you are over age 50. Employers can contribute additional funds, such as matching contributions and profit sharing.

401k Summary: The absolute maximum combined employer and employee contribution is $59,000

This can all be fully tax deductible if you wish.

For those that have a SIMPLE IRA plan in place now, and want to switch to a 401k, here are items to consider: 

-You cannot maintain a SIMPLE IRA and 401k in the same calendar year

-Employees must be given notice 60 days in advance of this type of change (November 1 for a January 1 switch)

If you think you may benefit from making this switch for next year, now is the time to do the math. 

Changes to the Federal Student Aid Process

This month, President Obama announced some significant changes to the FAFSA program starting next year.  One of the key changes to be aware of is changing the date when you are able to submit an application.  Starting next October, you will be able to file as early as October 1st, as opposed to January 1 under the current rules.

This change allows students and parents to report income information from the prior tax year.  with it being very difficult for most people to have current year tax information in January each year, this change should help many by making the process more aligned with the timing of available information.

Below is a link to more details on these changes from the US Dept of Education.

https://studentaid.ed.gov/sa/about/announcements/fafsa-changes

Save the Date | Planning for Medicare

Single Point Partners is hosting an educational Webinar on Medicare. This presentation is geared towards people approaching Medicare eligibility or already on Medicare; it covers the enrollment timeline, Medigap plans, availability to early retirees, and much more.

Online Webinar
We will email you instructions on how to view the webinar when the event gets closer.

Wednesday, September 30th
2:00pm

For updates on this event visit:
http://planningformedicare.splashthat.com