SIMPLE Plan - Savings Incentives Match Plan for Employees

The SIMPLE plan brings tax savings and retirement planning to the employee. This is a simple program for the employee. The employee makes contributions to the SIMPLE plan through a salary deferral with the payroll department. The contributions are tax deferred on the employee's W-2 wage statement. You may defer up to $6,500 of earned income each year in a SIMPLE plan.

The SIMPLE plan is designed to encourage employee involvement. It provides an employer contribution of up to 3% of salary for those employees who are participating. The SIMPLE IRA is easy to use. The IRS has certain rules on eligible employees, early withdrawals and other retirement regulations.

• The employee establishes the salary reduction agreement. This is given to the employer to initiate in the next pay period. The payroll deferral is on a pre-tax basis.

Salary Deferral (Amount Invested)		$100		$100
Federal Taxes	@ 15%	$ 15	@ 28%	$ 28
States Taxes	@ 7%	$ 7	@ 8%	$ 8
Net Take Home		$ 78		$ 64

• The employee decides the amount of salary deferral. The employer mails the contributions to the investment group on behalf of the employee. The investment group mails personal statements to the home of the employee. The employer never knows how much is in each account. Should the employee change companies, they own their account. The employer does not "sign off" on the employee's account, it belongs to the employee.
• The employee selects from among the investments offered in the plan. You control where the money goes, how much, and receive the reports on the invested funds. Features like telephone exchange and 24-hour account balances are for the employee's use.
• The advantage of tax deferred growth:

Setting aside $50.00 per month in your SIMPLE IRA tax- deferred account ...

You would have:

Invest for:	Total Tax-deferred Amount Invested	Tax-deferred SIMPLE IRA investment results
1 year	$600	$634
5 years	$3,000	$4,083
10 years	$6,000	$11,501
20 years	$12,000	$49,462
30 years	$18,000	$174,748
40 years	$24,000	$588,238

*For comparative and illustrative purposes only. It does not represent the actual investment results that may be obtained.

NOTE: Dale Hedstrand is a registered principal associated with AIG Financial Advisors, Inc., Member NASD/SIPC. Before proceeding further, please be advised that Dale Hedstrand is licensed to discuss with or offer investment and financial services and products only to residents of AL, AZ, CA, FL, ID, MD, MI, MN, MO, NH, NM, ND, OH, OK, OR, SC, SD, UT, VA, WA, WI, WY. Securities related services may not be provided to individuals residing in any state not listed above. The information offered is for informative purposes only. None of this information is to be construed as an offer to buy or sell securities referred to within or otherwise. Neither Dale Hedstrand nor AIG Financial Advisors, Inc makes any guarantee as to the accuracy or completeness of this information.

This information has been prepared from sources and data believed to be reliable but is not guaranteed by NASD/SIPC or AIG Financial Advisors, Inc., nor is any representation made herein as to its accuracy or completeness. This listing is provided for information purposes only and is not to be construed as an offer to buy or sell any securities mentioned herein.

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