Hello,
My employers recently set up a Simple IRA for all their employees. I think they contribute 2% of our yearly earnings into the account.
We also have the ability to contribute percentages of our income into this account if we choose. Before checking I thought this would be tax deductible, turns out it is not(Someone here can confirm?)
Does that mean I get taxed twice on this money? Is it no different from me just investing myself? Trying to figure out what the point of this plan is besides being able to thoughtlessly invest out of my paycheck and the added 2% from the employer.
Would they be better off setting up a 401K? Its a small business, around 10 employees.
thanks for the insight