The Franklin Templeton Simple IRA Will Help To Prepare You For Your Retirement Years

For more than 10 years, the Franklin Templeton Simple IRA has been offering businesses a viable option for their employees' retirement plan.

The Small Business Job Protection Act of 1996 introduced the Franklin Templeton Simple IRA to small businesses wishing to offer a low cost alternative to having a 401k plan for retirement savings to its employees. This retirement option is appropriate for businesses with less than 100 employees.

With the Franklin Templeton Simple IRA, employees can choose from 59 different plan funds o invest their retirement savings. In today's economy, having a wide selection is especially important, particularly for those who have at least 10 years until retirement.

The myriad of options is helpful in selecting the appropriate fund to ride out the markets as it bounces back from the credit and mortgage crisis that has even global markets teetering on instability.

The wide range of investment objectives are met for both the conservative and aggressive investor with the Franklin Templeton Simple IRA plans.

For 2008, the dollar limit for an employer sponsored IRA is $10,500. Employees who are over 50 can contribute an additional $2,500 to maximize their retirement savings, if they choose to do so.

Some financial analysts might advice against putting too much money into a fund of the person will need to have access to that money within the next five years. With the volatility of the markets today, investing is not a safe bet unless you are prepared to stick it out for the long haul.

Tax Considerations Related to a Franklin Templeton Simple IRA Plan

The tax considerations for an early withdrawal that are related to a Franklin Templeton Simple IRA plan varies, depending on the age of the participant.

Withdrawing money from a retirement plan before age 59 ½ subjects the participant to a 10% penalty fee, on top of the applicable federal, state and local taxes which must be paid.

For people ages 59 ½ to 70, the situation is much different. It is always best to consult with a financial adviser to understand all of the details such as inflation and an anticipated budget that is needed during retirement.

Investment professionals are available with participation in the Franklin Templeton Simple IRA plan, as well as other plans which are available. Knowledge is power and preparation is important to living a comfortable life during your retirement years.

 

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