Simple IRA Plans

Similar to 401(k)s, but made especially for small businesses
The Savings Incentive Match Plan for Employees (SIMPLE) was introduced by a provision of the Small Business Job Protection Act of 1996 as a unique way for small businesses to provide a retirement plan for employees. This plan is primarily employee-funded, with generally a 3% (of compensation) employer matching contribution requirement.¹ It provides a low-cost alternative for employers who cannot sponsor a 401(k) plan, but still want to offer a retirement program.

Who may be a likely candidate for a SIMPLE IRA?

1. An employer who wants a retirement plan with minimal costs.
2. An employer who wishes to establish a plan with an employee contribution component.
3. Self-employed individuals who could defer a larger percentage of their compensation due to the flat dollar contribution limit.

For more information on SIMPLE IRA plans view our fact sheet.

Advice Focused On Your Business
For help in determining which retirement plan is best for your small business call us at 1-800-392-3009 to schedule an appointment with a Financial Advisor in your area.

¹The employer must match employee deferrals dollar-for-dollar up to 3% of the employees' compensation (compensation includes employee deferrals), or the employer may choose to make a 2% of compensation, non-elective contribution to all eligible employees (even those who choose not to defer).

Source: Franklin Templeton Simple IRA & Sep IRA Employer Guide. American Funds Simple IRA Plan Sponsor Guide. The Hartford Retirement Plans for Small Businesses.

People's Financial Advisors is a division of People's Securities, Inc. Investments & Insurance are available through People's Securities, Inc. (member FINRA and SIPC), a subsidiary of People's United Bank.