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Simple IRA

A SIMPLE IRA provides small companies an alternative to complex, tax-qualified retirement plans.

Give your employees an added benefit — without the pain points of cost and administrative burdens. As your employee makes elective plan contributions, you simply match theirs. There are less reporting requirements involved. Best of all, your company's contributions may be tax deductible.

Features and Benefits


  • 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, 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
  • Contribution limits apply as determined by IRS

*Refer to IRS guidelines