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F.A.Q.

Employer F.A.Q.

What types of IRA-based retirement plans are available to me through Payday IRA?
We Offer 3 different types of IRA-based retirement plans:
  • Simple IRA
  • SEP IRA
  • Payroll Deduction IRA
Is there any cost to my business to establish an IRA program with Payday IRA?
A SIMPLE IRA, which stands for Savings Incentive Match Plan for Employees, is similar in design to a 401(k). A SIMPLE IRA is a good fit for any business with fewer than 100 employees. In a SIMPLE IRA, the employer can match employee contributions up to 3%. For a more detailed look at a SIMPLE IRA, click here to visit the IRS website.
What is a SEP IRA Program?
A SEP IRA, which stands for Simplified Employee Pension, is a good fit for the self-employed. In a SEP IRA, all contributions are made by the employer. Contributions can be as high as 25% of an accountholder’s salary. To learn more about SEP IRAs, click here to visit the IRS website.
What do I need to establish a SIMPLE IRA, Payroll Deduction IRA or SEP IRA for my business?
The only information you need, aside from basic contact information, is your Employer Identification Number (EIN). You will also need to make note of the “Company Code” you are given once you establish a plan. You will need the “Company Code” to share with your employees.
How do Roth IRAs differ from Traditional IRAs?
Unlike Traditional IRAs, contributions to Roth IRAs are not tax deductible. But, if the requirements are satisfied, Roth IRA distributions are tax free. Also, contributions can be made to Roth IRAs even after the Roth IRA owner reaches age 70½ as long as the Roth IRA owner has earned income (or files a joint federal income tax return and one or both spouses have earned income). Roth IRA contributions may, however, only be made if the Roth IRA owner’s modified adjusted gross income (MAGI) is within the allowable limits. Roth IRA owners are never required to take distributions, so the assets may remain in the Roth IRA as long as the Roth IRA owner is alive.
How does the payroll deduction process work with Payday IRA?
Once each employee chooses the amount they want deducted each pay, you simply withhold that amount from their paycheck and remit the amount to our custodian, Mid Atlantic Trust Company. You will also need to enter the contribution data into the Payday IRA platform so that we can identify your contributions.
How do I sign my employees up for my new IRA?
You have two options for helping your employees open their new IRAs: Direct them to this website and have them open the account themselves, or upload a file with your employees’ information and we will automatically email them the IRA-establishing documents for them to E-sign. If you choose to direct your employees to this site, you will need to give them the “Group Code” that you received during plan establishment. We will also provide you with an Enrollment Guide to give to your employees.

Employee F.A.Q.

What information do I need prior to opening an account with Payday IRA?
All you need is about 5 minutes of time and an e-mail address to open an account with Payday IRA. If you are selecting beneficiaries, it is helpful to have Social Security or Tax ID numbers available. If you don’t know a number, just enter ‘9’ nine times (999999999) in the required field.
Can you help me make investment selections?
Initially, you will be invested in a money market until funds are received. You will then be notified via e-mail that your account has been funded and encouraged to log-in and transfer funds to other investments. To help you make those decisions, an Investment Guide is always available under the Research tab. To access that guide, click here. You can also view the available fund options, including Target Date investment options under the Investment Options tab on the Payday IRA website.
How much can be contributed to an IRA?
You may contribute to an IRA, or, if you are eligible for a Roth IRA, any amount up to the $5,500 (for 2013) or 100% of your compensation if less than $5,500. If you and your spouse file a joint income tax return and your spouse has little or no income, you can contribute a total of $11,000 to separate IRAs established for you and your spouse. Additionally, a Catch-Up contribution of an additional $1,000 in 2013 can be made if you are age 50 or older in the contribution year.
How much can be contributed to a SEP?
A SEP is an employer sponsored Traditional IRA that is funded exclusively by your employer. If you are eligible under a SEP, your employer may contribute up to $50,000 or 25% of your compensation, whichever is less, into your IRA. If your employer makes a SEP contribution, you may also make a Traditional IRA contribution for that tax year.
How do Roth IRAs differ from Traditional IRAs?
Unlike Traditional IRAs, contributions to Roth IRAs are not tax deductible. But, if the requirements are satisfied, Roth IRA distributions are tax free. Also, contributions can be made to Roth IRAs even after the Roth IRA owner reaches age 70½ as long as the Roth IRA owner has earned income (or files a joint federal income tax return and one or both spouses have earned income). Roth IRA contributions may, however, only be made if the Roth IRA owner’s modified adjusted gross income (MAGI) is within the allowable limits. Roth IRA owners are never required to take distributions, so the assets may remain in the Roth IRA as long as the Roth IRA owner is alive.
Do I need any specific software to utilize Total IRA?
You will need Adobe Acrobat Reader and Java loaded on your computer. If you don’t already have those programs, click on the following links to download them. Both are free to download and install and come from trusted sources.
I am having technical difficulties or need help opening my account, what should I do?
Please call us at the toll free number posted above or send an e-mail to support@theIRAcenter.com and someone will help you with those problems. If you are e-mailing, be sure to provide a phone number for us to use in contacting you.

8 Penn Center West Suite 101 Pittsburgh, PA 15276

866-670-2829

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