Ideal for small businesses, SIMPLE (Savings Incentive Match Plan for Employees) IRAs (Individual Retirement Accounts) are a straightforward and affordable way for employers and employees to make contributions to a retirement account without a lot of administrative oversight and fees. Like a Traditional IRA, these plans are tax-deferred.
SIMPLE IRAs can be established by employees:
- of companies with 100 or fewer eligible employees
- of companies that offer no other retirement plan
Employees participating in a SIMPLE IRA plan can defer up to $14,000 in 2022. For those 50 and older, the catch-up contribution limit is $3,000.