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.

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.

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.

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.

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.

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 ...

In previous articles, I've discussed the SEP IRA and solo 401(k) business retirement. As a self-employed individual, you probably know you can open and fund a small-business owner retirement plan.

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.