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Future-proof your business.

Requirements

  • Available for small businesses - generally with 100 or fewer employees who earned at least $5,000 in compensation during the preceding year
  • Employer cannot maintain any other retirement plan
  • Withdrawals before age 59½ subject to penalty

Benefits for employer

  • Gain your employees trust and respect
  • Generally more cost-efficient and less complex than tax-qualified plans
  • Not subject to special 401(k) nondiscrimination test or top-heavy rules
  • Less restrictive than individual IRAs
  • Employees make contributions to which you match*
  • Establish a SIMPLE plan as an IRA for each employee or as part of a 401(k) plan

Benefits for employees

  • Fully vested, tax-deferred retirement
  • Available for self-employed individuals and company employees
  • Employees 50+ may make "catch-up" contributions
  • Employer makes matching contributions
  • Employer contributions are not includable in employee incomes for income-tax purposes
  • Tax-free until time of withdrawal
  • For 2020, employee contributions from their salary to a SIMPLE IRA cannot exceed $13,000.

Build a financial cushion and

earn competitive interest.

*The IRS states that the employer is generally required to match each employee's salary reduction contributions on a dollar-for-dollar basis up to 3% of the employee's compensation.  Instead of matching contributions, an employer can choose to make nonelective contributions of 2% of each eligible employee's compensation.