Learn about SIMPLE IRA for sole proprietors, including eligibility criteria, contribution limits, and withdrawal rules. Discover how to set up an account.

Employer Eligibility for a SIMPLE IRA. An employer must have 100 employees or fewer to open a SIMPLE IRA, and it must make contributions each year.

SIMPLE IRA eligibility rules. A SIMPLE IRA is available to self-employed individuals and small businesses with 100 or fewer employees and no other workplace retirement plan.

To be eligible to establish a SIMPLE IRA, the employer must have 100 or fewer employees. Those who are self-employed or sole-proprietors are eligible to establish a SIMPLE IRA as well.

If you have employees aged 50 and older, they’re eligible to make an added catch-up contribution of $3,500 to a SIMPLE IRA plan for a total of $19,500. For 2025, the contribution limit will go ...

A SIMPLE IRA is a flexible and tax-advantaged option for small businesses. An employee under age 50 can contribute up to $16,500 to a SIMPLE IRA in 2025. ... SIMPLE IRA eligibility requirements.

Lastly, under the act, small business employers who automatically enroll workers in their retirement plan are eligible for a tax credit to offset the costs of starting a 401(k) plan or SIMPLE IRA ...

A SIMPLE IRA is a retirement account that small companies can offer. It carries many of the same benefits of a 401(k) and functions like an IRA. Learn more about how it works for employers.

A SIMPLE IRA plan may permit contributions only under a qualified salary reduction arrangement, which is defined as a written arrangement of an “eligible employer” (defined below) under which ...

But Jack is eligible to make a catch-up contribution to the SIMPLE IRA because he will be at least age 50 by the end of the year. The maximum compensation that counts for the SEP IRA is $330,000.

In 2025, employees can contribute $16,500 into their SIMPLE IRA. In some cases, employees may be able to contribute more.