Simple IRA Plans Video

The Savings Incentive Match Plan, or SIMPLE IRA, is an easy retirement plan geared especially for small business owners, as you'll learn in this small business video minute.

You can offer a SIMPLE IRA plan if you have less than 100 employees and you don't offer another retirement plan. You'll benefit from tax-deductible employer contributions and your employees will benefit from day-one 100% vesting and the ability to rollover their accounts.

Video Transcript

Welcome to the SurePayroll minute. I’m Michael Alter.

The Savings Incentive Match Plan, or SIMPLE IRA, is an easy retirement plan solution geared toward small business owners.

If you have less than 100 employees and don’t offer another retirement plan, the SIMPLE IRA can help you and your employees save for the future.

As an employer, there are two ways to contribute: You can match the first 3 percent of your employees’ contributions to the plan dollar-for-dollar. Or, you can contribute an amount equal to 2 percent of your employees’ pay.

SIMPLE IRAs are great for small businesses because they are inexpensive to administer and have minimal reporting requirements. Employer contributions are tax-deductible, which can help out your bottom line.

Another benefit is that employees are 100 percent vested from day one, and they can set up their own investment options. They can also roll over their accounts to other SIMPLE IRAs with no tax penalty.

Before selecting a SIMPLE IRA, be sure to consider other retirement plans, like the 401(k), which might better meet the needs of your business.

For the simple answer to small business issues, I’m Michael Alter with your SurePayroll Minute.