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  1. I am also looking at whether we should simply use SIMPLE IRAs instead of 403(b). I know that SIMPLEs are cheaper for the employer. What I can't find is whether they are cheaper for the employer because they are indeed, simple, and so cheaper and easier to administer - or if any of the costs are sloughed off on to the employee. If the two plans potentially cost the same to the employee, and one is much cheaper than the other to administer - the only cost is a loss of flexibility - this is an important point. I can't find any expert who will say this. Lots of praises for how easy and cheap SIMPLEs are to administer - no talk about how it affects the employee.
  2. Hello group, I have been on and off the forum here (nearly) the last two years on talking to the folks at the non-profit that I work with trying to get them to add a lower-cost vendor to our plan, which currently has one product (annuity) offered by one vendor (Lincoln Financial Group). Besides what it might mean to the individual employees, the major concern was with how that might affect the organization's costs. Long story short, not only did they agree to go with Vanguard, but to simplify matters in the long-haul, the decision was to ditch Lincoln altogether. Currently there are 5 employees in the plan and 5 former employees (one of which might have already be retired and drawing on the annuity). Total assets in the plan are less than $500,000. There are probably about 20-25 people on the payroll altogether (i.e., 20-25 folks that would be eligible to participate in the plan). The plan administrator of the org was on the phone with Vanguard today to get a bit more info and get the process moving. When given the details, the Vanguard rep suggested that the org might get rid of the 403(b) altogether and instead offer a "Simple IRA" that can include the matching contribution of the org. There seems to be a dollar and hassle savings (no third-party plan administrator needed, no need for the Form 5500) for the organization. Anyone have any experience or advice, from either the org's or the employee's perspective? From the employee's perspective, my quick look shows that the IRS contribution limits for the Simple IRA are lower (12K vs. 17,500K, plus catch-up in each case, if applicable), and there's no Roth option in a SIMPLE IRA. Other than that, I don't see a difference for the employee as this does not affect how an individual contributes to his or her individual IRA. Eligibility requirements can be made the same as they currently are (one year) and a match can be made also. Thoughts? Thanks so much for your help! Mark
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