SIMPLE IRAs

Eligible employers include those who:

• Have 100 or fewer employees who earned at least $5,000 in the preceding year AND
• Do not maintain any other employer-sponsored retirement plan

Eligible employees include those who:

• Have earned at least $5,000 from the employer in any two preceding years AND
• Are expected to earn at least $5,000 in the current year

The SIMPLE IRA provides flexible contribution options.

• Employers must contribute up to 3% in matching contributions or 2% in non-elective contributions.
• Employees can contribute up to 100% of their workplace compensation up to $12,000 in 2013. Those 50 and older can contribute another $2,500 per year.

Employer contributions are tax deductible as a business expense.

• Employee contributions are pre-tax.
• Earnings grow tax deferred.

Penalties are determined by the SIMPLE IRA owner’s age and the length of their participation in the plan at the time of distribution.

• Minimum required distributions start at age 70½.
• 10% early withdrawal penalty applies for withdrawals made before age 59½.
• 25% early withdrawal penalty for withdrawals made in the first two years of plan participation, subject to certain exceptions.

Penalties may be waived for a variety of circumstances, including death or disability, or to pay for college, a first-time home, medical costs or certain other expenses. Contact your BB&T Investment Services, Inc. Investment Counselor for more information.

These products are only a few of the retirement and investment solutions offered by BB&T Investment Services, Inc. For information on other products and solutions, please contact a BB&T Investment Services, Inc. Investment Counselor.

• Bonds
• Mutual funds
• Stocks
• Annuities
• Exchange Traded Funds (ETFs)