(Savings Incentive Match Plan for Employees)

About the Plan

A SIMPLE IRA is a retirement plan that offers employees a salary deferral contribution feature along with a matching employer contribution. Consider this plan if your business has a steady income and your employees want to make contributions to a retirement plan.

Key Plan Benefits

  • Employees can make contributions
  • No limit on percentage of salary deferral
  • Minimal record keeping and reporting requirements
  • Low administrative costs

Eligibility Requirements for Plan Sponsor

Businesses with 100 or fewer employees are eligible.

Establishment and Funding

The Plan must be established prior to October 1. The employer contribution must be made by the employer’s tax return due date plus extension. Contributions can vary by year.

Employee Contribution Limits

An employee may contribute up to $12,500 in salary deferrals ($15,000 per year for individuals age 50 and older).

Employer Contribution Limits

An employer may make a matching contribution up to 3% of employee compensation (can reduce to 1% in any two out of five years) OR contribute 2% of employee compensation (capped at $265,000) up to $5,300.

Contact your Financial Representative or call the SunAmerica Retirement Plans Group at 800.858.8850 x6010 or Contact Us.

PLEASE NOTE: None of the information in this website should be considered legal and tax advice. You should consult your legal or tax advisers for information concerning your own specific tax situation. The forms and numbers shown in this website are for illustrative purposes only.