Interested in opening an account?

TD Ameritrade has been acquired by Charles Schwab. Now you’ll get access to thinkorswim® trading platforms and robust trading education at Schwab, along with great service, a commitment to low costs, and a wide range of wealth management and investing solutions.

Open an account at Schwab today. You can still open an account at TD Ameritrade and we’ll let you know when your account is ready to be moved in early 2024.

Get in touch Call or visit a branch

Call us: 800-454-9272

175+ Branches Nationwide

SIMPLE IRA

SIMPLE IRA plans for employees with an employer match option

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

Best For:

  • Small business owners with up to 100 employees

Tax Benefits:

Because this match plan allows for both employer and employee contributions, take advantage of the following benefits:

  • Tax-deductible contributions as the employer
  • Pre-tax contributions as the employee
  • Tax-deferred growth potential on contributions

Employee Contribution Limits:

  • 2022 Tax Year: Up to $14,000 in salary deferrals ($17,000 for those 50+)
  • 2023 Tax Year: Up to $15,500 in salary deferrals ($19,000 for those 50+)

Employer Contribution Limits:

  • Match employee contributions up to 3% (can reduce to 1% in any two of of five years) OR contribute 2% of employee's compensation (even if employee is not making deferral contributions)

Date New Account Must be Opened By:

  • Establish plan and notify employees by October 1 of the current tax year

Funding Deadline:

  • The employer contribution (match or non-elective) must be made by the employer's tax return date plus extensions (Tax return due date generally: April 15. Extension due date generally: October 15)

Administrative Responsibilities:

  • Employee notification of  plan setup
  • Employer must complete and retain Form 5305-SIMPLE or other plan documents in their records. Employees should receive a copy
  • No plan tax filings with the IRS

Withdrawals:

  • If you turned 70 1/2 prior to January 1, 2020: Minimum required distributions start at age 70 1/2
  • If you turn 70 1/2 after January 1, 2020: Minimum required distributions start at age 73 (unless you turned 72 prior to January 1, 2023, then your RMD's must begin by 72)
  • 10% early withdrawal penalty (25% for the first two year of plan participation) if under age 59 1/2 (exceptions may apply)

Get in touch Call or visit a branch

Call us: 800-454-9272

175+ Branches Nationwide

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