Simple IRAs
Advantages of a Simple IRAs
Low cost
Employees contribute to their own accounts
Employer match is a tax-deductible business expense
Easy setup and administration
No IRS reporting requirements
Contributions limits higher than with personal IRAs
2024 Employee Annual Deferral Limits: $24,500 ($32,500 if over age 50).
A SIMPLE IRA may not be appropriate for employers who do not want to match their employees' contributions, or for those looking for a loan option in the plan.
Mandatory Match: Dollar for dollar up to 3% of compensation - In tougher times, the employer may reduce the match to as little as 1%, but no more than two of every five consecutive years, or may elect to match 2% of compensation for all eligible employees.
