The Payroll Deduction IRA plan is available to all business owners looking to provide a valuable employee benefit or to complement an existing retirement plan. Payroll Deduction IRAs are easy to establish and maintain, with no administrative costs to the employer. Under this plan, employees make automatic, regular contributions to a Traditional and/or Roth IRA, (if eligible) through a payroll deducted amount of their choosing.
All employees with earned income and their non-working spouses. Individuals may contribute to a Traditional IRA up to age 70½.
Ability to make payroll deduct contributions to a Traditional and/or Roth IRA.
Funding the IRA and contribution limits for 2016
This is an employee only funded plan. Employees make automatic contributions through payroll deduction up to $5,500, plus an additional $1,000 for participants age 50 and above. Deductibility of Traditional IRA contributions and Roth IRA eligibility is dependent on adjusted gross income (AGI). See IRS Publication 590-A for additional information.
- Loans and hardships are not permitted.
- Generally withdrawals are penalty free after age 59½, death or disability.
- Roth IRA earnings are tax free after the owner attains age 59½ and the account has been held for at least 5 years.
- Certain exceptions may apply. See IRS Publication 590-B for additional information.
OppenheimerFunds is a high conviction global leader in asset management with a history of providing long-term innovative investment strategies, combined with intelligent risk taking, to help meet investors’ needs.
- No plan installation fees.
- Low annual maintenance fee per participant1:
- $25 for account balances under $50,000.2
- Fund expenses apply.
To get started, complete the Payroll Deduction IRA Application Booklet.
Call 800.255.2750 to talk to your Regional Advisor Consultant for more information.
1 Other account-related fees (if applicable), and fund expenses apply.↩
2 The fee will be waived if the total investments in Oppenheimer funds retirement and/or nonretirement accounts, excluding OppenheimerFunds direct-sold 529 plans, is $50,000 or more.↩
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This material is provided for general and educational purposes only, and is not intended to provide legal, tax or investment advice, or for use to avoid penalties that may be imposed under U.S. federal tax laws. Contact your attorney or other advisor regarding your specific legal, investment or tax situation.