2% nonelective contribution for each eligible employee.Matching contribution up to 3% of compensation (not limited by the annual compensation limit), or.Employer is required to contribute each year either a:.Employer cannot have any other retirement plan.Easily established by adopting Form 5304-SIMPLE PDF, Form 5305-SIMPLE PDF, a SIMPLE IRA prototype or an individually designed plan document.Available to any small business – generally with 100 or fewer employees.SIMPLE IRA plans do not have the start-up and operating costs of a conventional retirement plan. SIMPLE IRA plans can provide a significant source of income at retirement by allowing employers and employees to set aside money in retirement accounts. It is ideally suited as a start-up retirement savings plan for small employers not currently sponsoring a retirement plan. A SIMPLE IRA plan ( Savings Incentive Match PLan for Employees) allows employees and employers to contribute to traditional IRAs set up for employees.
