SIMPLE IRA

Who it's for

• Businesses with 100 or fewer employees and self-employed individuals
• Available to sole proprietors, partnerships, C corporations,
  S corporations
  

Key advantages

• Salary deferral plan with less administration
• Electronic funding with customized contribution allocation for each participant

Who can contribute

• Funded by employee deferrals and employer contributions

2018 employee contribution limits

• Up to $12,500 in salary deferrals; $15,500 if age 50 or older

2019 employee contribution limits

• Up to $13,000 in salary deferrals; $16,000 if age 50 or older

2018 & 2019 employer contribution limits

• Either match employee contributions up to 3% of compensation; can be reduced to 1% in any two out of five years or contribute 2% of each employee's compensation, up to $5,000

Administrative responsibilities

• No employer tax filings;
  certain annual employee notifications must generally be made by November 1.

Access to assets

• Withdraw at any time, but a 10% penalty may apply if you are under age 59½. If the withdrawal is taken within first two years of participation in the plan, that penalty increases to 25%.

Plan setup deadlines

• Establish by October 1.