Larry Kraft owns a restaurant that is open 7 days a week. He has 25 full-time employees, but he has fairly high employee turnover.

Larry Kraft owns a restaurant that is open 7 days a week. He has 25 full-time employees, but he has fairly high employee turnover. He believes that he can stabilize his workforce if he has a pension plan for his employees. Larry hears about a small business retirement plan called the SIMPLE IRA.  

a)     What is a type of plan that he could offer and how would that work? (10 points)

b)     What are the pros and cons of the SIMPLE IRA vs the other plan you discussed? (10 points)