A Savings Incentive Match Plan (also known as a SIMPLE IRA) is a retirement plan for small businesses with 100 or fewer employees who earned $5,000 or more in compensation in the last year. A SIMPLE IRA gives small business owners a convenient way to contribute to their employees’ — and their own — retirement.
Employees can contribute to a SIMPLE IRA through salary deferrals and also receive employer contributions. A SIMPLE IRA can help you and your employees contribute to retirement savings while reducing your taxable income.
SIMPLE IRAs have a number of advantages over other retirement plans, including:
Contributions can be made by the employee (up to $12,000 per year for tax year 2014) and by the employer. Employers can choose:
* SIMPLE IRAs can only be established though a Brokerage Services IRA.
Neither TIAA-CREF nor its affiliates offer tax advice. See your tax advisor regarding your personal situation.
The tax information contained herein is not intended to be used, and cannot be used, by any taxpayer for the purpose of avoiding tax penalties that may be imposed on the taxpayer. It was written to support the promotion of the products and services addressed herein. Taxpayers should seek advice based on their own particular circumstances from an independent tax advisor.
Investment, insurance and annuity products are not FDIC insured, are not bank guaranteed, are not bank deposits, are not insured by any federal government agency, are not a condition to any banking service or activity, and may lose value.
TIAA-CREF Individual & Institutional Services, LLC, and Teachers Personal Investors Services, Inc., members FINRA, distribute securities products.
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