Prime Asset Management Limited is pleased to introduce our Individual Retirement Account (IRA), a personalised pension plan which caters to your retirement goals.
Finally, self employed persons, professionals and contract workers can benefit from the most tax efficient vehicle to save for retirement.
What is an IRA?
An IRA is a personalised pension plan that provides a tax free way of saving for retirement. The significant tax benefits are:
Contributions made to your IRA are tax deductible; meaning that it is taken out before income tax is applied. This lowers your income tax payment.
Persons can contribute up to 20% of their annual income per year to an IRA. We encourage persons to maximise this limit as it reduces your income tax burden.
All investment gains are tax free with no time limit. This compares favourably to Long-term Savings Accounts (LSA's) where the tax free limit is $1M per year to a maximum of five years.
Eligibility for an IRA
To become eligible to join our IRA persons:
Should be between the age of 18-64 years
Be a resident of Jamaica
Should not be a member of another IRA
Should not be a member of a Company sponsored pension plan
Why is an IRA a better option than a Company Sponsored Pension Plan?
Many small and medium sized entities have long considered a pension plan for their valued long serving staff members but were concerned about the numerous and time-consuming legal and regulatory requirements. The solution is an IRA which eliminates these challenges;
An IRA offers a simpler and more cost effective structure
No implementation time to setup as the process is immediate
There are no legal and regulatory reporting requirements
Contributions made by the employer is tax deductible
A more flexible arrangement as it allows the Employer the ability to commence, cease, increase, decrease his contribution level based on economic circumstances
Contributions from the Employer is not mandatory
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