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Business Savings & Time Deposits
Future-proof your business.
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SIMPLE IRA

Give your employees an added benefit and peace of mind — all without taking on large costs and administrative burdens. A SIMPLE IRA provides small companies an alternative to complex, tax-qualified retirement plans.

As your employee makes elective plan contributions, you simply match theirs. There's less reporting requirements involved. Best of all, your company's contributions are tax deductible.

    Summary

    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 2019, employee contributions from their salary to a SIMPLE IRA cannot exceed $13,000.

    *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.