SIMPLE Savings Incentive Match Plan
for Employees

 

You can contribute up to 100% of your net earnings from self-employment, up to $17,000 in 2026, plus an additional $3,500 catch-up contribution if you are age 50 or older.
Individuals ages 60–63 are eligible for a special “super catch-up” contribution of $5,250.
Employers must also make either a 2% fixed contribution or a 3% matching contribution for eligible employees.

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Overview
SIMPLE IRA plans can provide a meaningful source of retirement income by allowing employers and employees to contribute to traditional IRA accounts. They offer lower start-up and administrative costs compared to conventional qualified retirement plans.

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Plan Highlights:

• Available to small businesses with 100 or fewer employees

• Easy and inexpensive to establish and maintain

• Employer cannot sponsor another retirement plan concurrently

• No Form 5500 filing requirement (IRS reporting exempt)

• Employer and employee contributions are tax-deductible

• 2026 deposits may be made until April 15, 2027 (or tax-filing deadline, including extensions)

• Contributions are less flexible and subject to lower limits than SEP or 401(k) plans

 

Employer Contribution Options:

• Matching contribution: Up to 3% of employee compensation (limited to the 2026 compensation cap of $345,000)

• 2% non-elective contribution: Made for each eligible employee regardless of participation

 

Additional 2026 Features:

• Roth option: Employers may now permit after-tax Roth contributions through participating custodians or plan providers

• Voluntary employer bonuses: Employers may make discretionary contributions up to 10% of compensation (maximum $7,000)

• Immediate 100% vesting in all contributions

 

Employees always own their SIMPLE IRA balances outright and can continue growing their savings tax-deferred (or tax-free in the Roth option) until withdrawal.