Payroll IRA?

[thinton75]

Hi, I'm 36 and for the 1st time in my life I decided to save for the future... I recently found out that my company is doing away with the traditional 401k (still trying to figure out what it all means) and switching to a Payroll IRA. I have never heard of this before and would like feedback on this program and how much if any should I stick into this program.

Thanks

[Petunia 100]

Originally Posted by thinton75

Hi, I'm 36 and for the 1st time in my life I decided to save for the future... I recently found out that my company is doing away with the traditional 401k (still trying to figure out what it all means) and switching to a Payroll IRA. I have never heard of this before and would like feedback on this program and how much if any should I stick into this program.

Thanks

Hmmm. Perhaps your company plans to deduct some amount from your paycheck and send it off to your IRA on your behalf?

(There is no retirement plan called "Payroll IRA".)


Or maybe you work for a small company switching to a Simple IRA?

[snshijuptr]

Sounds like it's just a regular old IRA, but you can get it directly out of your paycheck. Here is the IRS website:

Payroll Deduction IRA

Basically they are removing your 401k option.