Small businesses can take advantage of the simplified and potentially cheaper set-up process of a SIMPLE IRA. Generally recommended for companies with less than 100 employees, SIMPLE IRAs can be the right fit for your business.
Compared to 401ks, which can have extensive filing and testing requirements, SIMPLE IRAs are much easier to manage on a documentation basis from day one.
Contributions are allowed by both groups but employers are required to contribute. Employees can contribute if they wish to do so.
Contributions by employers must occur each year in one of two ways:
Click Here for more information on the IRS website.
Starting in 2024 employees can contribute up to $16,000 per year to their SIMPLE IRA. Age 50 or over catch-up contributions allow for another $3,500.