Retirement Services

Simple IRA

A retirement plan for organizations with fewer than 100 employees, Simple IRAs allow employees to contribute pre-tax and requires your business to make either matching contributions or a non-elective contribution for all eligible employees.

  • Advantages
    • Minimal paperwork and expense
    • Participant deferral of current income taxes
    • More flexibility with contribution amounts due to increase in deferral limit
  • Eligibility
    • All taxable businesses, government entities and tax-exempt organizations may establish SIMPLE IRA plans
    • Any employee earning $5,000 during any two preceding years and who is expected to earn $5,000 in the current year must be covered; exclusions are permitted for certain employees
  • Maximum annual participant deferral (cannot exceed 100% of pay)

    $12,500; catch-up contribution of $3,000 if age 50 or older

  • Required employer contribution:

    Dollar-for-dollar match up to 3% of pay1, or 2% of gross pay up to $265,000 for all eligible participants who earn at least $5,000 during the year

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