Simple IRAs & 401(k)s

Simple IRAs & 401(k)s

These plans are available for companies with fewer than 100 eligible employees earning at least $5000 annually. These plans require the employer to match employee contributions or provide a discretionary contribution for all eligible employees. Employees can defer up IRS limits (See Limits Section) and ADP testing is not required.

100 or fewer eligible employees earning at least $5,000 or expected to earn $5,000.
Maximum Eligibility Requirements: SIMPLE IRA 0 to 2 employment years earning $5,000 and SIMPLE 401(k) Age 21 plus 0 to 2 years of service (12 month period in which 1000 hours accrued)
Mandatory contributions for the Employer of either a Match or an Elective Discretionary contribution.
Match is dollar for each dollar up to 3% of compensation and the Elective Discretionary is 2% of compensation.
100% immediate vesting is required.
Calendar year as the plan year is required.

SIMPLE Forms and Information	SIMPLE IRA & 401(k) Forms and Information
IRS Form 5305-SIMPLE - to establish a SIMPLE IRA	IRS Article on Simple IRAs
DOL Information on 401(k) Plans - including SIMPLE 401(k)s	IRS Article on SIMPLE 401(k)