Question

SIMPLE IRA Startup Costs Credit -

Forum|Forum|4 years ago
September 19, 2021
2 replies
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My understanding is that a business setting up a SIMPLE IRA can get a start up cost credit per form 8881. However, what is an ordinary and necessary expense for establishing a plan for a small business with a few employees? I'm just trying to see if this would be applicable for my small business if I setup a plan. Does anyone have typical examples of an ordinary and necessary expense for a small business with just a couple of employees? Thanks!

"Qualified start-up costs are any ordinary and necessary expenses paid or incurred in connection with establishing or administrating the plan or retirement-related education of employees for the plan (IRC §45E(d)(1))."

Not A Product Question

Critter-3

These are usually the administrative costs that the IRA plan administrator bills you for.

G

GeorgeDenseff

Most investment companies will not charge you a start-up fee for a simple IRA for a few employees. There will be a yearly maintenance fee of $10 -$25 per employee per year.