IRS Updates Publications on IRAs

The IRS on March 4 announced that it has revised publications concerning aspects of IRA administration and taxation of IRAs. The IRS intends these publications to help businesses and individuals understand how to figure depreciation as well as pension options. The publications are:

• Publication 4587, Payroll Deduction IRAs for Small Businesses, which explains that individuals saving in a traditional IRA may be able to receive some tax advantages on the money they contribute, and that the investments can grow tax-deferred.
• Publication 4334, SIMPLE IRA Plans for Small Businesses, which explains what a SIMPLE (Savings Incentive Match Plan for Employees of Small Employers) IRA plan offers businesses that have 100 or fewer employees (who earned $5,000 or more during the preceding calendar year) and that do not have another retirement plan.