Simple IRA
SAVINGS INCENTIVE MATCH PLAN FOR EMPLOYEES OF SMALL EMPLOYERS
A Simple IRA is a tax-deferred, employer-provided retirement plan that allows employees to set aside money and invest it. Under a SIMPLE IRA plan, employees may choose to make salary reduction contributions and the employer makes matching contributions.
- Employer established retirement plan
- Employer contributions are deductible as a business expense
- Employees can make tax deferred contributions through payroll deduction
- Employers must match 100% of employees’ contribution (up to 3% of compensation) annually
- Qualified companies have less than 100 employees and no other qualified plan
- All distribution rules of a Traditional IRA apply
- Competitive rates
Simple IRA Contribution Limits
Year
Standard Contribution
Catch-Up Contribution
(for ages 50 or older)
2024
$16,000
$3,500
2025
$16,500
$3,500
2026 and on
Indexed with Inflation
