SIMPLE IRA

Definition

A Savings Incentive Match Plan for Employees IRA is a retirement plan available to small businesses with 100 or fewer employees, requiring employers to make either matching or non-elective contributions on behalf of eligible workers. Contribution limits are lower than those for a Solo 401(k) or SEP-IRA, but the plan is easier to administer than a traditional 401(k). Self-employed individuals can use a SIMPLE IRA, though it is generally less advantageous than other options when there are no employees.