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)

2017

$12,500

$3,000

2018

$12,500

$3,000

2019 and on

Indexed with Inflation