SIMPLE IRA

Give employees a reason to save for retirement

Simple IRA Eligibility
Keep retirement plans simple

A SIMPLE IRA is best for businesses with less than 100 employees or self-employed individuals.

  • You're eligible if you don't offer another employer-sponsored plan
  • Employees must have earned at least $5,000 from you in each of 2 previous years
  • You expect to earn at least $5,000 in the current year

SIMPLE IRA contributions

Required match

Employers must contribute up to a 3% match or 2% non-elective contributions.

Employee contribution limits

Employees can contribute up to 100% of their compensation annually up to $16,500.

Encourage saving for retirement

Give employees an incentive to plan for their futures while you earn a tax deduction or credit.

SIMPLE IRA withdrawals

Built for long-term saving

Withdrawals made within the first 2 years of plan participation may lead to a 25% penalty fee.

Withdraw without penalty

If you're 59 1/2, all withdrawals are permitted penalty-free but will be subject to income taxes.

Penalty for early disbursements

If you make a withdrawal before the age of 59 1/2, there's a 10% penalty fee in addition to income taxes.

Insights
A few retirement insights for your life

Planning

Retirement options for small businesses to offer

What small business owners need to know about retirement plan options.
Having a retirement plan is a benefit that can attract more great employees to your business.
Business Planning

The strategic value of retirement plan benchmarking

Explore key strategies for retirement plan benchmarking to control costs, maintain compliance and boost employee participation.
If you're not benchmarking, you're likely leaving value on the table.
Retirement

Comparing retirement plans for the self-employed

Explore the pros and cons of the five most common retirement plans for the self-employed.
The right option for you will largely depend on your current earnings, how much you want to contribute and whether you have any employees—along with a few other factors.

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