SIMPLE IRAs allow employees to participate in funding their own retirement without the expenses associated with traditional employer sponsored plans. It is an attractive retirement plan for a business with 100 or fewer employees who each received at least $5,000.00 of compensation during the preceding year.

SIMPLE IRAs offer the following advantages:

  • Employers and employees receive tax benefits.
  • Salary deferrals are deducted from the employee's gross income, therefore reducing taxes while earnings compound tax-deferred.
  • Employer contributions are 100% tax-deductible for the employer.


The above information is provided for educational purposes and is not intended as tax advice. Please consult a tax professional.