SIMPLE Savings Incentive Match Plan
for Employees

You can put all your net earnings from self-employment in the plan: up to $16,500 in 2025, plus an additional $3,500 in 'catch up' if you're 50 or older and if your 60-63 the 'super catch up' is $5,250, plus either a 2% fixed contribution or a 3% matching contribution

​

SIMPLE IRA plans can provide a significant source of income at retirement by allowing employers and employees to set aside money in retirement accounts. SIMPLE IRA plans do not have the start-up and operating costs of a conventional retirement plan.

Available to any small business  with 100 or fewer employees
Easy and inexpensive to set up and operate
Employer cannot have any other retirement plan
No filing requirement for the employer (Form 5500 exempt)

Contributions deductible on current-year taxes
2025 deposits accepted until 4/15/2026
Employer must contribute and employee may contribute; however, contributions are inflexible and contribution limits are lower than some other retirement plans.

Employer is required to contribute each year either a:

• Matching contribution up to 3% of compensation (in 2025 limited by the annual compensation limit of $337,500), or

• 2% non-elective contribution for each eligible employee

• Roth option: New 2025 provision allows after-tax contributions through participating providers

• Voluntary bonuses: Employers may add discretionary contributions up to 10% of compensation ($6,500 max)

 

Employees may elect to contribute

Employee is always 100% vested in all SIMPLE IRA money