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Savings Incentive Match Plan for Employees (SIMPLE) IRAs

Simple IRA's for C Corps, S Corps, Partnerships & Sole Proprieorships The Savings Incentive Match Plan for Employees (SIMPLE) IRA* is a tax-qualified retirement plan for businesses (C Corps, S Corps, Partnerships, and Sole Proprietorships) with fewer than 100 employees. It enables eligible firms to offer 401k-type benefits without complicated rules or high administrative expenses. It enables eligible employees to make tax-deductible contributions beyond what a traditional IRA allows.

For businesses, SIMPLE means:

  • No top-heavy rules.
  • No discrimination testing.
  • No Form 5500 filings each year.
  • Fully deductible contributions (subject to certain limits).

For individuals, SIMPLE means:

  • Contribution limits far above what a traditional IRA allows.
  • Complete investment control.
  • Some level of employer contributions.
  • Full and immediate vesting of employer contributions.

Required employer contributions can be made on either a 3 percent “elective” basis or a 2 percent “non-elective” basis.

Under the elective method, the employer is required to contribute only if an employee “elects” to contribute. Under the non-elective method, the employer contributes a flat percentage of compensation (2 percent minimum) for everyone regardless of any personal participation.

SIMPLE contribution limits are indexed for individuals age 50 and under. Contributors over the age of 50 can make catch-up contributions of up to $2,500 per year. One hundred percent of earned income can be contributed. All contributions must be made through salary withholding.

Serving the Insurance Needs of Indiana & Ohio


Kintz Insurance Team

Allen County
Ft. Wayne

Adams County
Decatur, 46733
Monroe, 46772
Berne, 46711
Geneva, 46740

Wells County
Ossian, 46777
Bluffton, 46714
Preble, 46782
Tocsin, 46777

Mercer County
Rockford, 45882
Celina, 45822
Mendon, 45862
Coldwater, 45828
St. Henry, 45883
Ft. Recovery, 45846
Chickasaw, 45826
Chattanooga, 45822
Paulding County
Payne, 45880
Antwerp, 45813
Paulding, 45879
Grover Hill, 45849
Haviland, 45851
Latty, 45855
Cecil, 45821
Melrose, 45861
Oakwood, 45873

Van Wert County
Delphos, 45833
Middle Point, 45863
Scott, 45886
Venedocia, 45894
Elgin, 45838
Willshire, 45898
Wren, 45899
Van Wert, 45891
Convoy, 45832
Ohio City, 45874