SIMPLE IRAs

A SIMPLE IRA is based on a savings incentive match plan for employees and can be a suitable way to set aside pre-tax dollars for retirement.

• Funded by employee and mandatory employer contributions
• Offers minimal costs and administration
• Employers have a choice of matching dollar-for-dollar up to the first 3% of employee pre-tax contributions or matching 2% of compensation to all eligible employees
• Works well for companies with 25 or fewer employees
• Business owner can deduct employer contributions from the company’s federal taxable income