SIMPLEs

A SIMPLE IRA (Savings Incentive Match PLan for Employees) gets both the employer and the employee involved in contributing to a retirement account. While employees are 100% vested from inception, there are steeper penalties for withdrawing money from the account within the first two years of participating.

• SIMPLE IRAs are relatively easy to set up and run
• Contributions are tax-deductible for employers
• Employee contributions are pre-tax
• Earnings grow tax deferred
• Employers can choose a matching feature or a percentage of wages
• Matching employer contributions belong to the employee immediately and can go with them if they leave