Business owners with 100 or fewer employees.
: Match up to 3% of each employee's compensation or $11,500, whichever is less.
: Contribute 2% of each eligible employee's compensation up to $5,000 for 2012.*
Contributions are deductible as a business expense.
For 2012, up to $11,500 ($14,000 if age 50 or older). Employees are not required to contribute in any given year.
More than 100 Vanguard mutual funds.
No age restrictions. Employees must earn a minimum amount specified by the employer during any two preceding years and expect to earn at least $5,000 in the current year.
Account service fees
$25 per year for each Vanguard fund in a SIMPLE IRA. This fee is waived if you are a Voyager, Voyager Select, or Flagship client
Savings Investment Match Plans for Employees (SIMPLE–IRAs) make it easier for self-employed individuals and small businesses with 100 employees or fewer to offer a tax-advantaged retirement plan, funded by employer contributions and elective employee salary deferrals.
Employer contributions are deductible as a business expense; tax-deferred growth, pre-tax contributions for participants.
$350 per plan1
collected annually from the employer; or $25 per participant1
collected annually from participants' accounts.
Employer has 100 or fewer employees who earned at least $5000 in the preceding year. Cannot maintain any other employer-sponsored retirement plan.
Participant has earned at least $5,000 from the employer in any two preceding years and is expected to earn $5,000 in the current year2
Plan Sponsor: Mandatory 3% matching contribution
or 2% non-elective contribution
Participant: Up to 100% of compensation up to $11,500 ($14,000 if age 50 or older) annually.
Only certain fund families
have mutual funds that are eligible investments for SIMPLE IRAs with no minimum initial investment requirement.
For current tax year - set up and notify employees by October 13
No plan tax filings with IRS. Certain annual employee notifications.
Minimum required distributions starting at age 70½
. 10% early withdrawal penalty (25% for first two years of plan participation) if under age 59½
, subject to certain exceptions.