Simple IRAs

SIMPLE IRAs - An Alternative Option for Small Business Retirement Plans

Available to businesses with 100 or fewer employees.

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.

Reduced filing requirements

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.

Employer and employee contributions

Contributions are allowed by both groups but employers are required to contribute. Employees can contribute if they wish to do so.

Employer Contribution Requirements

Contributions by employers must occur each year in one of two ways:

Matching contribution up to 3% compensation
2% non-elective contribution for eligible employees

Click Here for more information on the IRS website.

Employee Contribution Limits

Starting in 2025 employees can contribute up to $17,000 per year to their SIMPLE IRA.

For individuals 50-59 or 64+, they can contribute an additional $4,000 or $21,000.
For individuals 60-63, they can contribute an additional $5,250 or $22,250.