What Is a SIMPLE IRA?
We know it’s difficult to know what retirement plan is right for your business, especially when there are so many to choose from. Accuplan Benefits Services offers a variety of retirement plans for businesses, so no matter the size of your business, we promise we have the answer for you.
Both terms, SIMPLE and IRA are acronyms for Savings Incentive Match Plan for Employees, and Individual Retirement Plan. This is an employer-sponsored plan, which means that it is solely offered to employees through their employer. This type of account is specifically made for small businesses with less than 100 employees, and your employees can only participate in the retirement plan if they have made an income of $5,000 or more in any two previous years.
SIMPLE IRAs are widely utilized by small businesses because the set-up and the management cost of this account type is incredibly low. This account type does have very specific IRS set rules that have to be followed to stay qualified, so let us go over the rules next.