A “SIMPLE” (Savings Incentive Match Plan For Employers) is a retirement plan that may be established by employers, including self-employed individuals. These plans are comparatively inexpensive, and combine an employer match to the employee contributions. The employer is allowed a tax deduction for contributions made to the SIMPLE. The employer has two alternatives when it comes to making contributions.
Contributions to SIMPLE IRAs are immediately 100% vested, and the IRA owner directs the investments. Yearly contributions are capped at $12,500, plus catch-up contributions of $3,000 for employees 50 years of age and older.