SIMPLE Plans
A Savings Incentive Match Plan for Employees (SIMPLE) plan is a plan in which a small business with 100 or fewer employees can offer retirement benefits through employee contributions and employer matching contributions. Either a SIMPLE IRA or a SIMPLE 401(k) can be offered.
Contribution Rules
The
maximum amount an employee can contribute to a SIMPLE IRA or SIMPLE
401(k) in 2018 is $12,500. However, employees age 50 or older are
generally permitted to make additional “catch-up” contributions of
$3,000.
An employer is generally required to match each employee's contributions to a SIMPLE IRA or 401(k) on a dollar-for-dollar basis, up to 3% of the employee's compensation.
Withdrawal Rules