SIMPLE IRA

A SIMPLE IRA (Savings Incentive Match Plan for Employees Individual Retirement Account) is a retirement savings plan designed for small businesses with fewer than 100 employees. It allows both employees and employers to contribute to individual retirement accounts. Employees can set aside part of their salary, and employers are required to match these contributions up to a certain limit. SIMPLE IRAs have higher contribution limits than traditional IRAs and are easier to manage compared to larger retirement plans. This plan encourages saving for retirement while providing tax benefits to both employees and employers.