SIMPLE-IRA
A “Savings Incentive Match Plan for Employees” is designed for small companies — those with fewer than 100 employees. SIMPLE-IRAs offer pre-tax contributions and tax-deferred growth.
Limits
Just as with other retirement plans, SIMPLE-IRAs come with contribution limits. For 2008, an employee can contribute up to $10,500 pre-tax into his or her SIMPLE-IRA. Those over the age of 50 can contribute an additional $2,500 in pre-tax income. Money withdrawn from a SIMPLE-IRA before the age of 59½ will be subject to taxation and an additional 10% tax penalty.
For more information about First Investors funds when planning your SIMPLE-IRA, you may obtain a free prospectus and shareholder manual by contacting your registered representative, writing to the address below, or calling (800) 423-4026. You should consider the investment objectives, risks, charges and expenses of the funds carefully before investing. The prospectus contains this and other information about the funds, and should be read carefully before you invest or send money. An investment in these funds is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency.
