What is a SIMPLE IRA?

SIMPLE (short for “Savings Incentive Match Plans for Employees of Small Employers”) IRA plans can provide a significant source of income at retirement by allowing employers and employees to set aside money in retirement accounts. SIMPLE IRA plans are an option for businesses with fewer than 100 employees who earned $5K or more during the previous calendar year, as long as the business does not offer any other retirement plans. SIMPLE plans have lower contribution limits than traditional 401(k)s.