SIMPLE IRA

Employers:

• Employer contributions are deductible as business expenses.

Participants:

• Tax-deferred growth potential
• Pretax contributions for participants

Employers:

• Must have 100 or fewer employees who earned at least $5,000 in the preceding year
• Cannot maintain any other employer-sponsored retirement plan

Participants:

• Must have earned at least $5,000 from the employer in any two preceding years
• Must be expected to earn at least $5,000 in the current year¹

Funded by employer contributions and elective employee salary deferrals

Plan Sponsors:

• Mandatory 3% matching contribution or 2% non-elective contribution

Participants:

• Up to 100% of compensation, with a maximum of $12,500 for 2017 and 2018 ($15,500 if age 50 or older)

For current tax year: Set up and notify employees by October 1.²

Certain annual employee notifications must be made.

No plan tax filings with the IRS are required.

Required minimum distributions starting at age 70½

10% early withdrawal penalty (25% for first two years of plan participation) if under age 59½, subject to certain exceptions

Include a wide range of mutual funds, stocks, bonds, ETFs, and FDIC-insured CDs

Only certain fund families have mutual funds that are eligible investments for SIMPLE IRAs with no minimum initial investment requirement.

Research and tools to help you create a long-term plan and choose investments

No initial setup fees or annual maintenance fee