(Savings Incentive Match Plan for Employees)

What is a SIMPLE IRA Plan ?

A SIMPLE IRA is retirement savings plan. You and your employees can put a percentage of pay aside for retirement. The money will grow tax-deferred until it’s withdrawn at retirement.

How the SIMPLE IRA Plan Works ?

SIMPLE IRA is employer-sponsored plan offered within small businesses. This plan allows employees and employers to contribute to traditional IRAs set up for employees.

Who is Eligible for SIMPLE IRA Plan ?

SIMPLE IRAs are designed for small businesses. This plan is for anyone who is self-employed, owns a small business, or any business with 100 or fewer employees.


SIMPLE IRA Plan Contribution Limits

The annual contribution limit for a SIMPLE IRA Plant is $14,000 for 2022 and $15,500 in 2023. For employees age 50 or older, a $3,500 “catch-up” contributions is also allowed.

SIMPLE IRA Plan Withdrawals

You have to pay income tax on any amount you withdraw from your SIMPLE IRA. You may also have to pay an additional tax of 10% or 25% on the amount you withdraw unless you are at least age 59½.

Rules of SIMPLE IRA Plan

Employees are always 100% vested in the funds in their SIMPLE IRA accounts. If they leave their job, they can take all of the funds with them, including any contributions from the employer.

SIMPLE IRA Plan Rollover

A tax-free rollover may also be made from a SIMPLE IRA to an IRA that is not a SIMPLE IRA, but only after 2 years of participation in the SIMPLE IRA plan.

How to Set up SIMPLE IRA Plan ?

click here to set up

You'll need to choose a financial institution to serve as trustee of the SIMPLE IRAs to hold each employee's/participant's retirement plan assets.