Business IRA Solutions

Business IRA FAQs

• What is a SEP IRA?

  A Simplified Employee Pension (SEP) IRA is a retirement plan that allows business owners to make contributions to employee retirement accounts. SEP IRAs are easy to establish, offer flexible contribution amounts, and may provide tax benefits for participating employers. 

• What is a SIMPLE IRA?

  A Savings Incentive Match Plan (SIMPLE) IRA allows eligible employees to contribute a portion of their pretax compensation toward retirement savings. SIMPLE IRAs are designed for smaller businesses seeking a straightforward retirement plan that supports employee participation and offers potential tax benefits for employers. 

• What is a Payroll Deduction IRA?

  A Payroll Deduction IRA allows employees to contribute a portion of their paycheck directly into an IRA through automatic payroll deductions. This option helps simplify retirement saving and reduces administrative effort through automated contributions. 

• Which Business IRA is right for my organization?

  The right solution depends on your business size, contribution preferences, and retirement goals. SEP IRAs, SIMPLE IRAs, and Payroll Deduction IRAs each offer unique advantages. A Horizon Bank retirement specialist can help determine which option best aligns with your organization's needs. 

• Can employees contribute to their retirement account?

  Yes. Employees can contribute through SIMPLE IRAs and Payroll Deduction IRAs, allowing them to save for retirement through regular payroll contributions. 

• How do I get started?

  Horizon Bank can help you establish SEP IRAs, SIMPLE IRAs, or Payroll Deduction IRAs for eligible employees. Contact a Retirement Specialist to discuss your goals and identify the retirement plan that best fits your organization.