SIMPLE stands for Savings Incentive Match Plan for Employees. SIMPLE IRA plans are retirement vehicles, maintained on a calendar year basis, for small employers (no more than 100 employees earning at least $5,000 for the preceding year) which permits contributions under a qualified salary reduction agreement. If eligible, you, as an employee, may contribute up to the amount shown in the chart on the next page a year to a SIMPLE IRA and your employer will make matching contributions up to certain levels.

Tax-exempt employers and governmental entities are permitted to maintain SIMPLE IRA plans.

The taxation of SIMPLE IRA plans is the same as under a traditional IRA; generally contributions are not taxable until withdrawn. The early tax penalty - withdrawing your money before age 59 1/2 - however, is increased to 25% during the first two years of participation. After that the early withdrawal penalty is 10%. Rollovers from one SIMPLE IRA to another are permitted, but rollovers to a traditional IRA are permitted without penalty only after two years of participation.

Grage Financial Group can help you get started to achieve a successful plan.