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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.

When you choose to invest for the future at TD Ameritrade, you will not be charged administrative or account maintenance fees.** You also get access to a breadth of investment choices, and guidance from our team of Investment and Financial Consultants.

Speak with a Financial Consultant to get started today at 800-472-0586.

Open a SIMPLE IRA

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:

  • 2020 and 2021 Tax Year: Up to $13,500 in salary deferrals ($16,500 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)
  • Contributions Worksheet for Employers

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 72
  • 10% early withdrawal penalty (25% for the first two year of plan participation) if under age 59 1/2 (exceptions may apply)

Further Details:

Get in touch Call or visit a branch

Call us: 800-454-9272

175+ Branches Nationwide

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TD Ameritrade does not provide tax advice. We suggest that you seek the advice of a tax-planning professional specifically suited to the needs of small business owners.

Taxes related to TD Ameritrade offers are your responsibility. All Promotional items and cash received during the calendar year will be included on your consolidated Form 1099. Please consult a legal or tax advisor for the most recent changes to the U.S. tax code and for rollover eligibility rules.

**Commissions, service fees, and exception fees may apply. Please review our commission and fees for details.

This is not an offer or solicitation in any jurisdiction where we are not authorized to do business or where such offer or solicitation would be contrary to the local laws and regulations of that jurisdiction, including, but not limited to persons residing in Australia, Canada, Hong Kong, Japan, Saudi Arabia, Singapore, UK, and the countries of the European Union.

TD Ameritrade, Inc., member FINRA/SIPC, a subsidiary of The Charles Schwab Corporation. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank. ©2021 Charles Schwab & Co. Inc. All rights reserved.