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SIMPLE IRA Plan FAQs

A SIMPLE IRA plan provides small employers with a simplified method to contribute toward their employees' and their own retirement savings. Employees may choose to make salary reduction contributions and the employer is required to make either matching or nonelective contributions. Contributions are made to an Individual Retirement Account or Annuity (IRA) set up for each employee (a SIMPLE IRA).

A SIMPLE IRA plan account is an IRA and follows the same investment, distribution and rollover rules as traditional IRAs. See the IRA FAQs.

See also IRS Publication 560, IRS Publication 590 and IRS Notice 98-4 for detailed information on SIMPLE IRA plans and SIMPLE IRAs.

These FAQs provide general information and shouldn’t be cited as legal authority. Because these answers don’t apply to every situation, yours may require additional research.


Establishing a SIMPLE IRA plan
Participation
Compensation
Contributions
Distributions
Investments (same as IRA rules - see  IRA FAQs)
Rollovers
Terminating a SIMPLE IRA plan
 

Have a question about retirement plans? Contact us.

 

Page Last Reviewed or Updated: 06-Jan-2014