An easy-to-administer, salary-deferral retirement plan for employees with an employer match option

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

• Simple administration and low administrative costs. No maintenance or account fees. Regular fees (such as transfer out, partial transfer, wire, overnight and the like) do apply.
• No employer tax filings
• No IRS contribution testing
• Employees can make contributions
• Does not limit eligibility or employee access to funds

This plan is generally suitable for businesses with 100 employees or fewer. It's usually available when other tax-favored plans are not permitted.

A SIMPLE IRA must be established prior to October 1. The employer contribution (match or non-elective) must be made by the employer's tax return due date, plus extension.

2010: Up to $11,500 in salary deferrals ($14,000 for individuals age 50 and over).

2010: Match employee contributions up to 3% (can reduce to 1% in any two out of five years) OR contribute 2% up to $4,900 for 2010.