Government Contractors: It’s Time to Get Out of That Simple IRA
Traditional retirement plans just don’t work for government contractors. If your company uses a SIMPLE IRA, you need to make changes NOW to ensure compliance and maximize your plan.
- SIMPLE IRAs have significant limitations when it comes to prevailing wage projects
- SIMPLE IRAs cannot be used in conjunction with a prevailing wage plan or any other retirement plan
November 1st is the deadline for making changes to your SIMPLE IRA. The IRS requires that employees be notified of a SIMPLE plan termination before the 60-day enrollment period for 2014.
If you’re not utilizing a retirement plan provider that specializes in working with prevailing wage contractors, you’re likely not getting the most from your plan. As a business owner, are you limited as to the amount you can put away for retirement? Are you getting refunds? Having trouble with non-discrimination testing? It’s time to work with a provider who understands government contractors and prevailing wage laws.
Using the fringe to provide benefits for your hourly workers on government contracts can also reduce your payroll burden by 6.5% or more. Contact us at 1-800-328-1519 for more information on how to make your retirement plan work for your business and your employees and compliant with government regs.