REALTOR® Magazine Online: Savings Incentive Match Plan for Employees (SIMPLE) IRA

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Savings Incentive Match Plan for Employees
(SIMPLE) IRA

This type of plan is geared to businesses with fewer than 100 employees but can also be used by self-employed sole proprietors and partnerships.

Allows contributions of pre-tax income of up to $7,000.

Business Applications

Requires mandatory company match of between 1 percent and 3 percent annually, or a non-elective contribution of 2 percent.

Can be used by self-employed individuals, partnerships, or the owners of unincorporated businesses, limited liability companies, or Sub-S corporations.

Offers a tax credit to cover administrative and worker education costs for three years to new plans set up in 2002 or after.

Doesn’t require annual filing with the federal government, as do some other types of pension plans.

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