- A SIMPLE IRA Plan – (Savings Incentive Match Plan for Employees) is an Individual Retirement Arrangement (IRA) based plan for Small Businesses. By using this plan it allows the employees to elect to defer a portion of their salaries into this retirement program. Since this is a simplified plan, the administrative costs are lower than a more complex plan which can be a savings for your business. Under a SIMPLE IRA Plan, employees and employers make contributions to IRAs set up by employees, subject to certain percentage-of-pay and dollar limits.
With a SIMPLE IRA Plan:
- You can either make a contribution matching your employees’ contributions dollar-for-dollar up to 3% of pay or a 2% non-elective contribution for each eligible employee.*
- You cannot offer any other retirement plan.
- You can sign up easily with minimal paperwork.
*Under the non-elective contribution formula, even if an eligible employee doesn’t contribute to his or her SIMPLE IRA, that employee must still receive an employer contribution to his or her SIMPLE IRA equal to 2% of his or her salary.
Contact Us to find out more about how our SIMPLE IRA can help you.
