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What is a SIMPLE IRA?

A Savings Incentive Match Plan for Employees (SIMPLE IRA) is designed for small companies with fewer than 100 employees.
Contributions into a SIMPLE IRA are funded through contributions by both the employer and the employee.
SIMPLE IRAs offer pretax contributions and tax-deferred growth.
smiling businesswoman standing in front of conference table

Why consider a SIMPLE IRA?

We all need to supplement Social Security with personal retirement savings to help provide the level of income that we will need in retirement. This is especially true as life expectancies increase and individuals experience more frequent job changes (with lower employer pensions). In addition, there are key advantages to establishing a SIMPLE IRA.

What are the advantages?

Through a SIMPLE IRA, business owners can offer their employees an effective vehicle to save for retirement, without the high costs and administrative burdens associated with other retirement programs. A SIMPLE IRA is a smart choice for both small-business owners and their employees. A SIMPLE IRA enables small-business owners to offer an attractive benefit to employees. For employees, a SIMPLE IRA is a convenient, tax-deferred way to save even more for retirement, due to the employer’s matching contribution.

Contribution Limits

Just as with other retirement plans, SIMPLE IRAs come with contribution limits. For 2019, an employee can contribute up to $13,000 pretax into his or her SIMPLE IRA. Those over the age of 50 can contribute an additional $3,000 in pretax income. Money withdrawn from a SIMPLE IRA before the age of 59½ will be subject to taxation and an additional 10 percent tax penalty.

Your Advisor can help you decide if a SIMPLE IRA is right for you. 

To learn more, read our product brochure about the SIMPLE IRA. 

Neither Foresters Financial nor its affiliates provide legal, tax or estate planning services. Should you require such services, you should consult a legal, tax or estate planning professional.

For more information about mutual funds from Foresters Financial when planning your SIMPLE IRA, you may obtain a free prospectus by downloading it from our website, contacting your Representative, or calling 800 423 4026. You should consider the investment objectives, risks, fees or charges, and expenses of the funds carefully before investing. The prospectus contains this and other information about the funds, and should be read carefully before you invest or send money. An investment in these funds is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency.

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